In line with the Monetary Policy Committee’s (MPC) task to evaluate, determine, and provide transparency on the monetary policy actions of the Central Bank of Aruba (CBA), the CBA communicates the following. During its meeting of March 22, 2024, the MPC decided to reduce the reserve requirement rate from 22.0 percent to 21.5 percent as of April 1, 2024. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 21.5 percent of their clients’ liquid deposits. The decision to lower the reserve requirement rate was based on the official reserves having expanded and remaining adequate according to the International Monetary Fund (IMF) Assessing Reserve Adequacy (ARA) metric monitored by the CBA. The CBA continues to monitor reserves and the excess liquidity developments, and stands ready to adjust the reserve requirement rate, if deemed necessary.

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