ORANJESTAD - The Centrale Bank van Aruba (CBA) decided during the Monetary Policy Committee meeting of May 8, 2026 to keep the reserve requirement rate for commercial banks at 12.5%, effective June 1, 2026.
Key highlights:
1. Adequate foreign reserves
As of April 3, 2026, foreign reserves remained amply above the benchmarks monitored by the CBA. Moreover, the CBA expects foreign reserves to stay adequate in 2026.
2. A low inflation environment
Both the end-of-period (EOP) and period average inflation remained at low levels of 1.1% and 0.2%, respectively, in March 2026.
3. Global economic uncertainty
Current global uncertainties, including persistent geopolitical tensions, may impact foreign exchange reserves and inflation, potentially leading to deviations from current baseline projections.
The CBA monitors monetary and economic indicators closely and adjusts its monetary policy stance as needed to maintain the fixed exchange rate between the florin and the U.S. dollar.