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 monthly meeting on May 16, 2024, the MPC decided to reduce the reserve requirement rate from 21.5 percent to 20.5 percent as of June 1, 2024. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 20.5 percent of their clients’ liquid deposits1. The decision to lower the reserve requirement rate was based mainly on the expanded and adequate level of official reserves according to the CBA monitored Assessing Reserve Adequacy (ARA) metric of the International Monetary Fund (IMF). In addition, the inflation rate was moderate, and the pace of credit growth was relatively low.

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