Editorial: Two optionsPOSTED: 04/3/14 4:19 PM
St. Maarten may soon be looking at two options: set up its own Central Bank or switch completely to the American dollar.
Now that Curacao has indicated a clear desire to have its own Central Bank without St. Maarten it is obvious that the two countries will each go their own way.
The concept of Caribbean brothers and sisters has never truly gelled between Willemstad and Philipsburg, so when the last ties are finally cut the new situation will probably be experienced as a big relief on both ends.
The pros and cons of dollarization have been discussed ad nauseam over the years and there is nothing new to say about this topic anymore. All we are waiting for is a political decision.
The Caribbean guilder – a pipedream from the heady days before 10-10-10 – will never see the light of day and the Antillean guilder will be laid to rest sooner or later.
St. Maarten is too small of a country to support an independent Central Bank. Yes, such a bank could turn a profit, but that money has to come from somewhere – from citizens that are already struggling with a high cost of living. Against that background, going for the dollar seems to be the only sensible option.