Bakker on dollarization

POSTED: 01/24/14 3:15 PM

St. Maarten – The Cft neither has a legal mandate nor a professional opinion on the official currency for St. Maarten, Cft Chairman Age Bakker said in response to a question posed by a member of the audience after his lecture at the University of St. Martin Monday night.
Having worked previously in the Central Bank of the Netherlands, Bakker is familiar with the advantages and disadvantages of being in a monetary union.
He said that as St. Maarten continues to debate the issue of whether to remain in or leave the monetary union, a plan for independent supervision for financial institutions will also have to be considered. In other words, St. Maarten’s own central bank and the costs of creating one will have to be carefully considered too.

“You would also have to think about how to organize financial supervision of your banks and nearly all of your banks have their offices in Curacao. As we all know banking supervision is costly. It is not easy to find people who can do that in a good way.”
Regarding the division of assets of the former Netherlands Antilles, Bakker remarked that this process was taking very long.

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