The Caribbean Guilder (XCG)

Introducing the Caribbean Guilder: A New Chapter in Curaçao and Sint Maarten's Monetary Union

On August 22, the Central Bank of Curaçao and Sint Maarten (CBCS) unveiled the Caribbean guilder, marking a significant milestone in the region's financial history. This new currency represents the culmination of years of planning by the Central Bank of Curaçao and Sint Maarten, stemming from the constitutional reforms of October 10, 2010. As part of the constitutional reforms following the dissolution of the former Netherlands Antilles, Curaçao and Sint Maarten established a monetary union. The "Regeling Gemeenschappelijk Geldstelsel Curaçao en Sint Maarten," which governs the currency of this union, stipulates that the Caribbean guilder will replace the current Netherlands-Antillean guilder (NAf.). Initially proposed as the "Dutch-Caribbean guilder," the name was ultimately changed to "Caribbean guilder" to avoid confusion, as the term "Dutch Caribbean" also encompasses the BES islands and Aruba.

Learn more about the Caribbean Guilder from CBCS

Why a new currency was necessary?

Several key factors necessitated the introduction of the Caribbean guilder:

Stock Shortages and Production Challenges: The stock of Netherlands Antillean guilder (NAf) banknotes and coins was depleting, and the banknote printing company responsible for producing these notes had ceased operations. Additionally, other printing companies were unable to produce new banknotes due to outdated security features in the current NAf note.

Cost-Effective Solution: Upgrading the security features of the Netherlands Antillean guilder to modern standards would incur costs comparable to introducing a new currency. This financial reality made the transition to the Caribbean guilder a logical and timely decision.

Security Concerns: The outdated specifications of the existing banknotes and coins, coupled with advances in counterfeiting technology, posed a significant risk to the integrity of the currency. High-quality counterfeits could undermine public confidence in the NAf and jeopardize the security and efficiency of the payment system.

Transitioning to the Caribbean Guilder

With the exchange rate set at 1:1 between the Netherlands Antillean guilder and the Caribbean guilder, the transition is designed to be smooth for the public. Citizens will be able to exchange their NAf cash for Caribbean guilders at their commercial banks. From the day of introduction, ATMs will dispense only Caribbean guilders, ensuring a seamless shift to the new currency.

A Modern and Secure Currency

The Caribbean guilder, abbreviated as Cg (with the official currency code XCG in the payment system), is designed to meet modern standards of security and efficiency. The new banknotes and coins will feature advanced security features and sophisticated designs, making them highly resistant to counterfeiting. This modernization will enhance public trust in the currency and protect against fraud or loss when using cash.

Importance of Cash in the Economy

Cash continues to play a vital role in the economies of Curaçao and Sint Maarten, where many people rely on cash for daily transactions. Additionally, cash serves as a crucial backup during power outages, internet disruptions, or natural disasters, ensuring that payments can still be made when digital systems are unavailable. The anonymity of cash transactions also protects the payer's privacy, making it an important aspect of financial inclusion and personal freedom.

Transition Period

When will the Caribbean guilder be introduced?

The Caribbean guilder will enter into circulation on March 31, 2025.

How long after the introduction of the XCG can NAf still be used for payments?

For three months as of the introduction date of the Caribbean guilder.

How long after the introduction of the XCG can NAf still be used for payments?

NAf payments will be accepted for up to 3 months after the introduction of the XCG. Change will (mainly) be in XCG.

Where can I exchange my NAf for XCG and for how long?

Exchanges can be made at the commercial banks where you hold an account, for up to 12 months after the introduction of the Caribbean guilder.

After these 12 months, NAfs can still be exchanged at the CBCS for up to 29 years.

When making these exchanges, both the commercial banks and the CBCS will apply the relevant Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) regulations.

Will vending and payment machines also be able to accept XCG coins and notes as of the introduction date?

Vending and payment machines mainly use coins. These machines will be gradually adjusted during the 3-month concurrent circulation period.

Trust and Safety

How can I know XCG that banknotes and coins are authentic?

The CBCS will launch an information campaign to provide information on the various XCG banknotes and coins, their specifications and features, so that everyone knows how to recognize whether the XCG banknotes and coins they receive are authentic. The CBCS will also launch a mobile application and a dedicated website with extensive information on the Caribbean guilder coins and notes.

How will the visually impaired be able to recognize the different denominations of XCG banknotes and coins and know if they are authentic?

The XCG banknotes and coins will be designed according to specifications (including security features) that will enable the visually impaired to distinguish the different denominations of the XCG banknotes and coins and to identify them as authentic. The CBCS will also organize special information sessions for the visually impaired.

Will the introduction of the XCG affect confidence in the currency and its stability?

Like the NAf, the XCG will be pegged to the US dollar at a fixed exchange rate of 1.79, as stipulated in the Caribbean Guilder Exchange Rate Regulation. The CBCS's monetary policy aims to ensure the stability of the currency (i.e., of the peg) and, therefore, in terms of monetary stability, nothing will change with the introduction of the XCG.

What will be the exchange rate to the US$

Like the NAf, the Caribbean guilder will be legally pegged to the U.S. dollar at an exchange rate of US$1 = 1.79.

Technical Aspects

Who is responsible for creating the new currency?

The CBCS is responsible for the design and for commissioning the printing of the banknotes. The responsibility for designing and minting coins in various denominations also vests with the CBCS.

The design and specifications for the coins are described in article 9 and 10 of the “Regeling Gemeenschappelijk Geldstelsel Curaçao en Sint Maarten.” The materials from which the coins are made as well as the weights, dimensions and quantity of these coins shall be determined by the CBCS.

Who holds the copyright to the designs of the coins and banknotes?

The Centrale Bank van Curaçao en Sint Maarten is the copyright holder.

What will be the currency symbol of the Caribbean guilder?

The abbreviation for the Caribbean guilder will be Cg.

However, the official currency code in the payment system will be XCG. Reason for this is that the official currency-code of more than one country (which is the case of the Countries of Curacao and Sint Maarten) always starts with a 'X'.

With the Netherlands-Antillean guilder we use NAf. as the currency-symbol, while the official currency-code is ANG.

What will the new Caribbean guilder banknotes be made of?

The banknotes, like the Netherlands Antilles banknotes, will be made of cotton. However, this will be of better and more durable quality. As a result, the XCG banknotes will last longer and fewer banknotes will need to be produced. With less production and fewer banknotes destroyed, the sustainable banknotes will contribute to a cleaner environment.

Who will be supplying the XCG?

The coins will be minted and delivered by the Royal Canadian Mint while the banknotes will be printed and delivered by Crane Currency.

Why was a new supplier chosen instead of the NAf supplier?

Several mints and banknote suppliers were approached to bid on the XCG project. From the bids received, the choice finally fell on Royal Canadian Mint and Crane Currency.

Incidentally, the supplier of NAf bills Joh. Enschedé stopped producing banknotes a few years ago. That company was therefore not able to bid on the XCG project.

What happens to the NAf banknotes and coins turned in?

In the normal course of money circulation, banknotes and coins that have been withdrawn from circulation and are no longer considered fit for use as means of payment are destroyed. Therefore, the destruction of these banknotes and coins does not amount to the destruction of capital but is part of the normal process of ensuring the quality of the banknotes and coins in circulation, among other things in order to combat counterfeiting.