Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

NETHERLANDS ANTILLES

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIYes.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
Other security restrictionsPursuant 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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlThe Central Bank of the Netherlands Antilles (CBNA) issues exchange licenses, whereas the Department of Finance issues import licenses. Authorized banks may provide foreign exchange for all current transactions without prior approval of the CBNA.
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 importsYes.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
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 not subject to import surcharges.
State import monopolyNo.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsn.a.
Surrender requirementsn.a.
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 the equivalent of NA f. 100,000 a year, provided these payments are effected through a local exchange bank. Reinvestment of proceeds from the sales of securities is also allowed.
On capital market securitiesThere are licensing requirements for most capital market transactions.
On money market instrumentsControls apply to all these transactions.
On collective investment securitiesControls apply to all these transactions.
Controls on derivatives and other instrumentsControls apply to all these transactions.
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 investmentYes.
Controls on real estate transactionsNo.
Controls on personal capital transactions
LoansControls apply to all these transactions.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroadA license is required if these transactions involve local currency.
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 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
Insurance companiesInsurance companies, under certain conditions, may invest with nonresidents amounts equal to the amount invested in qualifying local investments (50%/50%). Effective January 4, 2006, deviations from these limits are allowed, but at a penalty.
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).
Pension fundsPension funds, under certain conditions, may invest with nonresidents amounts equal to the amount invested in qualifying local investments (50%/50%). Effective January 4, 2006, deviations from these limits are allowed, but at a penalty.
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.
References to legal instruments and hyperlinksn.a.
Changes during 2006
Provisions specific to the financial sector
Provisions specific to institutional investorsJanuary 4. Deviation from the minimum limits on the investment portfolio held locally by insurance companies and pension funds was allowed, but at a penalty.

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