Chapter

NETHERLANDS ANTILLES

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyThe currency of the Netherlands Antilles is the Netherlands Antillean guilder.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe Netherlands Antillean guilder is pegged to the dollar, the intervention currency, at NA f. 1.7900 per $1. The official selling rate is NA f. 1.82 per $1. Official buying and selling rates for certain other currencies are set daily on the basis of rates of the dollar abroad.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangementsNo.
Administration of controlThe Central Bank (CB) issues exchange licenses where required. The Department of Finance (DOF) issues import licenses where required, and authorized banks may provide foreign exchange for all current transactions without prior approval of the CB.
International security restrictions
In accordance with UN sanctionsSanctions under UN resolutions against Iraq and the Federal Republic of Yugoslavia (Serbia/Montenegro) are in effect.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotes
On exports
Domestic currencyExportation is prohibited except for traveling purposes.
Foreign currencyNonresidents may take with them on departure any foreign currency that they brought in.
Resident Accounts
Foreign exchange accounts permittedResident individuals may hold these accounts without a special license.
Held domesticallyYes.
Held abroadTransfers from a local bank account to foreign accounts are allowed up to NA f. 10,000 a quarter.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsThese accounts are permitted, but approval is required for accounts exceeding NA f. 200,000.
Convertible into foreign currencyYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsImports with delivery dates exceeding payment dates by more than 12 months must be reported to the CB.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresNo.
Import taxes and/or tariffsImported goods for which there are locally produced substitutes are subject to tariffs ranging from 25% to 90%. Certain commodities are subject to import surcharges in Bonaire and Curacao.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsIf export proceeds are not received within 12 months of shipment, the delay must be reported to the CB.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesNo.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersMost types of current invisible payments and remittances may be made freely. A license is required if the delivery and payment dates are more than one year apart.
Investment-related paymentsThere are restrictions on the transfer of profits.
Prior approvalCompanies must submit their annual report to the CB for verification of the actual amount of profits and dividends recorded before they may remit them.
Indicative limits/bona fide testYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsInvestments by residents in officially listed foreign securities (and in mutual funds whose shares are listed) are permitted free of license up to NA f. 100,000 a year, provided that these payments occur through a local exchange bank. Reinvestment of proceeds from the sales of securities is also allowed.
On capital market securitiesThere are controls on all capital market transactions.
Controls on derivatives and other instrumentsYes.
Controls on credit operationsCredit operations require licenses, which are normally granted.
Controls on direct investment
Outward direct investmentYes.
Inward direct investmentInvestments require licenses, which are normally granted.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase abroad by residentsA license is required for these purchases.
Controls on personal capital movements
Loans
By residents to nonresidentsOnly short-term loans are permitted.
To residents from nonresidentsOnly short-term loans are permitted.
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer into the country by immigrantsYes.
Provisions specific to commercial banks and other credit institutions
Differential treatment of deposit accounts in foreign exchange
Credit controlsEffective January 1, 1999, the ceiling on net domestic credit to the private sector, which stood at 2.5%, was eliminated.
Investment regulationsCB approval is required for the acquisition of more than 5% of shares in other companies.
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limitsBanks are not allowed to have negative net foreign sset positions. Any negative position is subject to penalty.
Provisions specific to institutional investorsYes.
Limits (min.) on portfolio invested locallyThe limits are 40% for the first NA f. 10 million, 50% for the next NA f. 10 million, and 60% for additional amounts of the total provisions and liabilities.
Currency-matching regulations on assets/liabilities compositionThere must be sufficient assets in a particular currency to cover the liabilities in that currency (currency exposure is not allowed).
Other controls imposed by securities lawsThere is no securities law.
Changes During 1999
Capital transactions
Provisions specific to commercial banks and other credit institutionsJanuary 1. The ceiling on net domestic credit to the private sector was lifted.

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