Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

NETHERLANDS ANTILLES

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of January 31, 2005)

Status Under IMF Articles of Agreement
Article VIIIYes.
Exchange Arrangement
CurrencyThe currency of the Netherlands Antilles is the Netherlands Antillean guilder.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe 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 taxThere is no tax, but a license fee of 1% applies to all transfers to nonresidents.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlThe Central Bank of the Netherlands Antilles (CBNA) issues exchange licenses, while the Department of Finance (DOF) issues import licenses. Authorized banks may provide foreign exchange for all current transactions without the prior approval of the CBNA.
International security restrictions
In accordance with UN sanctionsPursuant to UN Security Council resolutions, economic sanctions are imposed against the former government of Iraq, the Taliban, and individual groups and organizations associated with terrorism.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesExports and imports of banknotes exceeding the equivalent of NA f. 20,000 must be declared to customs.
On exports
Domestic currencyExportation is prohibited except for travel purposes.
Foreign currencyNonresidents may take with them on departure any foreign currency that they brought in, although amounts exceeding the equivalent of NA f. 20,000 must be declared to customs.
On imports
Domestic currencyYes.
Foreign currencyYes.
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. 50,000 a quarter without prior CBNA approval. These accounts and all transfers from and to these accounts must be reported to the CBNA.
Accounts in domestic currency held abroadNo.
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. In addition, these accounts may be funded only with foreign exchange.
Convertible into foreign currencyYes.
Approval requiredYes.
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 CBNA.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresNo.
Import taxes and/or tariffsImported goods are subject to tariffs and levies. Goods for which locally produced substitutes are available are subject to import surcharges in Bonaire and Curaçao. However, these surcharges were eliminated on January 1, 2005.
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 CBNA.
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 paymentsThese transactions are subject to certain conditions.
Prior approvalCompanies must submit their financial statements to the CBNA 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 transactionsYes.
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 in amounts up to NA f. 100,000 a year, provided that these payments are effected through a local exchange bank. Reinvestment of proceeds from the sales of securities is also allowed.
On capital market securitiesControls apply to all transactions in capital and money market instruments. There are licensing requirements for most capital market transactions.
Controls on derivatives and other instrumentsControls apply to all these transactions.
Controls on credit operationsControls apply to all credit operations. Credit 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 transactionsNo.
Controls on personal capital transactions
Loans
By residents to nonresidentsOnly short-term loans are permitted without a license.
To residents from nonresidentsOnly short-term loans are permitted without a license.
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer into the country by immigrantsYes.
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)A license is required if these transactions involve local currency.
Differential treatment of deposit accounts held by nonresidents
Reserve requirementsNonresident deposits with local banks are not subject to reserve requirements.
Investment regulationsCBNA 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 asset positions. Any negative position is subject to penalty.
Provisions specific to institutional investors
Limits (min.) on investment portfolio held 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 2004
No significant changes occurred in the exchange and trade system.
Changes During 2005
Imports and import paymentsJanuary 1. Import surcharges on certain goods were eliminated.

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