On March 15, 2017, the Federal Reserve raised the federal funds rate to 0.75 – 1.00%. This is the third increase since the historically low level of 0.00 – 0.25% that was used from December 16th 2008 to December 16th 2015. By linking the ANG to the US dollar interest rates on the international money market impact the money market interest rates of the monetary union of Curaçao and Sint Maarten. For example, the interest rate applied by the Central Bank of Curaçao and Sint Maarten (CBCS) for the two weekly auctions of certificates of deposit (CDs) for banks based on international US dollar LIBID- rate. An increase in the federal funds rate has a direct effect of the international money market rates. The CBCS has therefore decided by March 20, 2017 to increase its lending rate from 1.00% to 1.50%. The historically low level of 1.00% was in force since December 29, 2008.
Willemstad,
March 28, 2017
Central Bank of Curaçao and Sint Maarten