The Central Bank of Aruba (CBA) announced that during its Monetary Policy Committee (MPC) meeting held on October 10, 2025, it decided to keep the mandatory reserve requirement for commercial banks at 12.5%, effective November 1, 2025.
This monetary policy decision means that the minimum balances local commercial banks are required to hold at the CBA will remain unchanged.
Key Points
Adequate international reserves despite credit growth
Up to August 2025, Aruba’s foreign reserves remained well above CBA’s required levels, even as credit continued to grow. CBA also expects these reserves to remain sufficiently strong and to continue increasing.
Inflation remains low
As of August 2025, inflation—measured month-over-month against the same month in the previous year—stood at -0.8%, reflecting a relatively low level. The annual average inflation reached 0.4%.
Global economic uncertainty
Current global uncertainties may impact Aruba’s foreign reserves and inflation, potentially causing deviations from baseline projections.
Domestic developments
Local refinancing of government external debt could influence foreign reserves.
The CBA stated that it will continue to closely monitor monetary and economic indicators and will adjust its monetary policy when necessary to maintain the fixed peg of the Aruban florin to the U.S. dollar.
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