Page 20 - RIU HOTEL

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LOCAL Monday 20 noveMber 2017

Centrale Bank of Aruba Releases September 2017 Monetary Policy

ed in the net foreign assets purchase of government observed in cruise visitors other services, and trans-
during July 2017 compared bonds by the commercial (+18.1 percent), while the fers to foreign accounts.
to the previous month, an banks. U.S. market performed fa- This was largely counter-
expansion was registered Inflation vorably, reflected in an up- balanced by foreign ex-
in both the international In July 2017, a steep de- turn in tourism receipts re- change revenue from tour-
reserves (+Afl. 5.9 million cline was registered in both corded by the commercial ism activities.
or+0.3 percent) and official the end of period (−1.1 per- banks (+5.9 percent). Financial markets
(Centrale Bank van Aruba) reserves (+Afl. 24.9 million or cent) and the 12-month Money supply In July 2017, expansions
ORANJESTAD - During its
meeting of September 7, +1.5 percent) when com- average price level (−0.4 In July 2017, money supply were recorded in the
pared to December 2016.
percent), as measured by registered an increase of weighted average inter-
2017, the Monetary Policy
Committee (MPC) of the Consequently, the interna- the Consumer Price Index Afl. 60.3 million to Afl. 4,194.5 est rate on new loans (+1.7
(CPI).Both decreases were million compared to the percentage points to 7.3
tional reserves and the of-
Centrale Bank of Aruba
(CBA) decided to keep ficial reserves reached, re- primarily the result of a re- previous month, resulting percent) and in the weight-
duction (−14.0 percent) in from an expansion in the ed average interest rate
spectively, Afl. 1,898.3 mil-
the reserve requirement
at11.0 percent and to up- lion and Afl. 1,698.1 million electricity tariffs in January net domestic assets (+Afl. on new deposits (+0.1 per-
2017. The 12-month core 81.5 million) which was centage point to 1.9 per-
at end-July 2017.
hold the advance rate at
1.0 percent, after reviewing Credit developments inflation (excluding energy partly offset by a decline cent), when compared to
and food) edged up by 0.4 in the net foreign assets (−
Overall credit growth with-
the previous month. Conse-
the most recent economic
and monetary data. The in the domestic commer- percent, mainly reflecting Afl. 21.1 million, excluding quently, the weighted av-
revaluation
differences). erage interest rate margin
cial banking sector stayed an increase in the hous-
following information and
analysis were considered positive (+3.7percent)at ing and hotel & restaurant While the growth in the do- grew by 1.6 percentage
components of the CPI in mestic component of the points to 5.5 percent.
the end of July 2017com-
in reaching this decision.
pared to December 2016. July 2017. money supply was attribut- Advance rate
International reserves Notwithstanding the de- Tourism ed to an upturn in domes- The determinants of the
The international reserves creases registered in con- During the first seven tic credit (+Afl. 85.3 million) CBA’s advance rate
and a slight decrease in stayed stable. The margin
sumer credit (−1.6 percent) months of 2017, the weak-
(including revaluation dif- and business loans (−1.4 ness in the Venezuelan the non-credit related bal- between the CBA’s ad-
ferences of gold and for- percent), overall commer- tourism market continued ance sheet items (−Afl. 3.8 vance rate and the Feder-
eign exchange holdings) cial banking sector credit to influence the outcome million), the decline in the al Funds rate stood at 0.15
and official reserves re- remained positive, due of total tourist arrivals (−7.0 net foreign assets stemmed percentage point in July
mained at adequate levels to expansions in housing percent) and visitor nights mostly from transactions 2017.Consequently, there
at the end of July 2017. De- mortgages (+2.6 percent) (−2.1 percent). On the associated with the import wasno need to change the
spite the contractions not-
and an Afl. 108 million net other hand, a growth was of goods, the payments of CBA’s advance rate.q