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Marlin says public being misled about currency, dollarization
PHILIPSBURG--The switch from the Netherlands Antilles guilder to the Caribbean guilder in 2012 will not have any bearing on the use of US dollars in St. Maarten, Constitutional Affairs Commissioner William Marlin told reporters recently.
He was debunking "misinformation" which he said was being peddled in the community by some politicians about this issue.
Tourists and businesses will be able to use US dollars. They will not have to change their US currency to the Caribbean guilder in order to do business here or to shop here, he said. Persons with US dollar accounts in St. Maarten will be able to maintain their accounts. The Caribbean guilder will have the same value as the current Netherlands Antilles Guilder Marlin said, adding that "absolutely nothing will change except the name and look of the currency."
The Caribbean guilder will have a fixed exchange rate of 1.79 Caribbean Guilders to one US dollar. The new currency will come in 5-, 10-, 20-, 50- and 100-guilder notes.
Marlin said some politicians were deliberately misleading the public about the issue of currency and dollarization telling them that they will no longer be able to use dollars when the new currency is introduced.
The decision for St. Maarten and Curaçao to establish a joint central bank and common currency - the Caribbean Guilder - was agreed to in the Hague in the 2006 final declaration under the tenure of Democratic Party leader and former Constitutional Affairs Commissioner Sarah Wescot-Williams. It was reconfirmed in November 2008.
However, Wescot-Williams and United People's (UP) party leader Theo Heyliger have made a sharp turnaround from their previous stance about establishing a St. Maarten currency.
Marlin said "everything will remain the same" when the Caribbean Guilder comes into effect.
"If one has US $100,000 in the bank it will remain US $100,000. If you have NAf. 100,000, what will change in the future is that instead of being in the Netherlands Antillean guilder, it will be the Caribbean Guilder currency and it will have the identical value as the current Netherlands Antilles guilder...
"I was recently approached by a concerned resident who said that members of one political party had told them that William Marlin was against dollarization and is promoting a currency that will not allow for the use of the US dollar," Marlin said.
He said this was a "clear" attempt to mislead the public and "place fears into the minds of people."
He said the misinformation that persons would have to close their dollar accounts and change their US dollars into the local currency is far from the truth.
"If businesses that depend heavily on doing business in dollars and who do their transactions in dollars are no longer allowed to have a dollar account and would need to change their money in a local currency, this can signal quite some losses for those businesses," Marlin said.
The Caribbean guilder will not come into existence on until January 2012. In the interim the Netherlands Antilles guilder will be used during the transition period from island territories of the Antilles to country status for St. Maarten and Curaçao.
"To dollarize or not to dollarize was not a decision taken by the National Alliance or William Marlin. It is a decision taken jointly by St. Maarten and the rest of the Kingdom partners and signed off on, on November 2, 2006 and again confirmed in November 2008 at the Westin Hotel."
"It is clearly politics being played with this issue and the inability to rise above petty politics and make the government look bad in every way that you can and misleading the public rather than educating the public by telling people that they won't be able to use dollars," Marlin said.
"They are telling people all kinds of things in the privacy of their homes but, some do come back and ask if this is true."
In the meantime, Constitutional Affairs Minister Roland Duncan said during Saturday night's Arts Video Studio (AVS) second political debate that St. Maarten stands to lose US $30 million per annum from the one per cent tax imposed on dollar withdrawals if it switches to dollarization. It will also incur huge expenses, Duncan said. Local News |