Press releases

Central Bank of Aruba

State Ordinance Exchange Rate Margin Compensation

As per April 1, 2015, State Ordinance Exchange Rate Margin Compensation was introduced. This levy has been introduced with the purpose to finance the activities of the Central Bank of Aruba (hereinafter “CBA”).

  • Essence
  • The Exchange Rate Margin Compensation is a levy on all purchases and sales of foreign exchange transactions settled through the commercial banks.
  • Pursuant said State Ordinance, the commercial banks will pay CBA a net exchange rate margin.
  • Each commercial bank will recharge a fee to their clients on all foreign exchange transactions against a rate to be determined by each individual bank and in accordance with said State Ordinance.
  • On all sales of foreign currency (cash and noncash money) to the public, commercial banks will be charged an exchange rate margin compensation equivalent to 3/8% (0.375%), while on all purchase of foreign currency (cash and noncash money) from the public, commercial banks will collect an exchange rate margin compensation equivalent to 1/8% (0.125%).
  • Each commercial bank will consequently recharge a fee to their clients on all foreign exchange transactions against a rate to be determined by each individual bank and in accordance with said State Ordinance.

Further to the introduction of said State Ordinance, please be aware of additional expenses in case of purchase or sale of foreign currency.

For completeness sake, we mention that this newsflash only covers the headlines of the introduction of the Exchange Rate Margin Compensation State Ordinance. Therefore, no rights can be derived from this newsflash

Please feel free to contact our office.

This is a general newsflash. No rights whatsoever may be derived from this. Should you still have specific questions or remarks, then you can of course always contact our office.

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