Monetary Policy November 2018

Press Release ¹

During its meeting of November 19, 2018, the Monetary Policy Committee (MPC)2 of the Centrale Bank van
Aruba (CBA) decided to keep the reserve requirement at 11.0 percent and to uphold the advance rate at 1.0
percent, after reviewing the most recent economic and monetary data. The following information and
analysis were considered in reaching this decision, based on September 2018 data.

International reserves

Both the international reserves (+0.7 percent) and official reserves (+3.1 percent) recorded growth in the
first nine months of 2018. Consequently, the international reserves and the official reserves reached,
respectively, Afl. 1,837.6 million and Afl. 1,700.1 million at end‐September 2018.

Credit developments

Growth in total commercial bank credit remained positive (+2.5 percent) in September 2018, compared to
December 2017. This development was mainly driven by housing mortgages.


The 12‐month average rate of inflation rose to 2.3 percent in September 2018, compared to −0.4 percent in
September 2017, primarily the result of a higher indirect tax rate per July 1, 2018 and price increases in the
transport and food components. The 12‐month core inflation (excluding energy and food) reached 1.2


During the first nine months of 2018, tourism indicators development noted upturns, as growth was
registered in tourist arrivals (+1.5 percent), visitor nights (+1.6 percent), and cruise visitor arrivals (+5.8

Money supply

In September 2018, money supply registered an increase of Afl. 133.9 million to Afl. 4,373.8 million compared
to December 2017, resulting from expansions in the net domestic assets (+Afl. 94.2 million) and in the net
foreign assets (+Afl. 39.7 million, excluding revaluation differences).

Centrale Bank van Aruba
December 24, 2018


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