The investment policy is regularly part of an external review “
The investment policy of the CBCS is of course an interesting and important topic, but there is no urgency at all at the moment.
This has been announced by the Central Bank of Curaçao and Sint Maarten (CBCS) in response to questions from the Antilliaans Dagblad in response to Parliamentary questions from MFK member Charles Cooper to outgoing Minister of Finance Kenneth Gijsbertha (MAN) about the alleged intention of the CBCS to sell some of the gold stock.
,, The investment policy is regularly part of an external review to ensure that the reserve management of the CBCS remains state of the art. This is a continuous process ”, explains the communication department of the Central Bank in Scharloo.
The CBCS does not say anything more about it at this stage, although this newspaper has since asked a whole series of questions (see elsewhere on this page), because – according to the Central Bank – the questions have been put to the outgoing Minister of Finance. ‘through an official letter’.
,, The minister will answer these questions in accordance with national ordinance. We therefore do not consider it appropriate for the CBCS to answer these questions via the media in anticipation of its answers. ” Thus the short statement to the editor.
This buys the CBCS time, because in his answer to the States’ questions, Minister Gijsbertha will undoubtedly request information from the Central Bank in his turn.
In his questions, MFK MP Cooper gives the impression that he has information that would show that the CBCS, on the instruction of the supervisory board (SB), approached the International Monetary Fund (IMF) with regard to advice on how best the gold supply (or – and that is much more obvious – part of it) can be sold.
According to the most recent data available to the public, namely the Summary Balance Sheet at the end of February 2021, the value of the gold reserves of Curaçao and Sint Maarten amounts to NLG 1,311.5 million (slightly more than 1.3 billion).
But that value fluctuates, and sometimes greatly, proves the same balance. Because in one month, the value had fallen by 91 million compared to the end of January 2021. In January, too, there was a decrease compared to December 2020.
The most recent highest level of the value was in mid-last year, at the end of July. 2020, reached with 1,478.6 million on the balance sheet of the CBCS. The explanation at the time was that the continued rise in the market value of gold is caused by the sharp deterioration of the world economy as a result of the coronavirus pandemic and geopolitical tensions; the demand for gold then increases, as it is considered a “safe haven” during turbulent economic conditions.
Guilder pegged to dollar
In his letter, Cooper – currently Member of Parliament, but named as future minister in the Pisas cabinet (MFK-PNP) – to be formed – indicates that the Dutch- The Antillean guilder has been linked to the US dollar on the basis of the gold and foreign exchange reserves with a fixed exchange rate since 1971.
The fact that Cooper, as a prominent member of the new coalition to be formed, is asking these questions and expressing his concern, partly in connection with the stability of the guilder, indicates that the future government wishes to stay far from the sale of ‘the silverware’.
This is a reassuring thought for many at a time when the Curaçao government – in addition to the liquidity support from the Netherlands that attaches conditions to this – is eagerly looking for cash. It was also stated that Curaçao has enough money, including references to reserves and the General Pension Fund Curaçao (APC).
The Antilliaans Dagblad asked the Central Bank CBCS some additional questions in response to the concise answer:
Can the CBCS confirm that there is (again) an IMF mission? How many is this in a short time?
And can the CBCS confirm that in the context of this IMF mission, consideration has been given to changing the investment policy and a possible partial sale of the gold stock?
Has any of the gold stock ever been sold in the past 50 years?
And, can the CBCS (in general) say something about the pros and cons of selling (part of) the gold stock? With regard to the valuation of the NAf (guilders), but also what possible signal this sends out and the effect on confidence?
Should it come to the point that part of the gold stock is sold, who decides? The Executive Board (EB), the Supervisory Board (SB) and / or d
Categories: Central Bank Curacao Sint Maarten