Centrale Bank van Aruba (Central Bank of Aruba)

By: EconomyWatch   Date: 8 September 2010

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The Eastern Caribbean Central Bank was set up in October 1983, as the monetary authority for a group of eight island economies namely - Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.

The Centrale Bank van Aruba was established on January 1, 1986 after Aruba was declared an autonomous country within the Kingdom of Netherlands. The bank has an autonomous position within Aruba's public sector and is a legal entity in itself.

As the bank initiated its operations, the Aruban florin was brought into circulation and was pegged to the US dollar.

The Central Bank of Aruba strives to maintain the internal and external value of the florin and promote security and integrity of the Aruban financial system. The Central Bank Ordinance lists out the under mentioned functions to be carried out by the bank:

  • Conduct monetary policy
     
  • Supervise the financial system of the country;
     
  • Issue bank notes;
     
  • Issue coins on behalf of the government;
     
  • Act as the banker for the government;
     
  • Be the central foreign exchange bank and, as such, regulate the flow of payments to and from other countries; and to advise the Minister of Finance on various financial matters.

The bank carries out the above-mentioned functions through various activities like

  • Formulating and implementing monetary policy and related measures through regulating bank credit and liquidity;
  • Supervising the activities of the commercial banks and other financial institutions by monitoring their liquidity and solvency to protect the interests of depositors and policyholders, and to maintain monetary and financial stability and integrity in the country;
  • Managing the country's official gold and foreign exchange reserves;
  • Regulating international payments according to the State Ordinance on foreign exchange transactions;
  • Bringing bank notes into circulation to meet the needs of businesses and the general public;
  • Acting on behalf of the government to issue treasury bills and government bonds; and
  • Monitoring economic and financial developments.

The prospects for the Aruban economy are strong in 2006. The Company Perception Survey of the Central Bank of Aruba confirms that companies express themselves positive on the current situation and short-term prospects.

The Address and Contact details of the bank is as follows:

Centrale Bank van Aruba

Address: Havenstraat #2 Oranjestad ARUBA Phone No.: ++297-8-225 09  Fax: ++297-8-322 51

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