What Is the Antillean Guilder and How Does It Work?
Learn how the Antillean Guilder functions within its economy, including its issuance, exchange rate system, and role in financial transactions.
The Antillean Guilder (ANG) is the official currency of certain Caribbean territories, with a history linked to the region’s colonial past. While many Caribbean nations have adopted other currencies, the ANG remains in use under a fixed exchange rate system that promotes stability.
Official Circulation
The Antillean Guilder is the currency of Curaçao and Sint Maarten, both constituent countries within the Kingdom of the Netherlands. It is used for daily transactions, including retail purchases, service payments, and government fees. While discussions have taken place about switching to the euro or introducing the Caribbean guilder, the ANG remains the standard.
Coins, used for smaller transactions, range from 1 cent to 5 guilders, while banknotes go up to 100 guilders. Although digital payments and card transactions are increasing, cash remains widely used, particularly in local markets and small businesses.
ATMs dispense guilders, and banks offer currency exchange services. While electronic payments are growing, cash remains essential for informal transactions and businesses that prefer to operate outside digital banking systems.
Monetary Authority
The Central Bank of Curaçao and Sint Maarten (CBCS) regulates the Antillean Guilder. Established in 1828, it is one of the Western Hemisphere’s oldest central banks. Its role includes managing liquidity, regulating banks, and implementing policies to maintain the currency’s value.
To control inflation, the CBCS adjusts interest rates, manages the money supply, and enforces banking regulations. It also ensures compliance with anti-money laundering and counter-terrorism financing measures, aligning with international standards.
Additionally, the CBCS oversees payment systems, facilitates government bond issuances, and collaborates with regional and international financial institutions to strengthen economic stability.
Exchange Rate Mechanisms
The Antillean Guilder is pegged to the U.S. dollar at a fixed rate of 1.79 ANG per 1 USD, providing stability for trade, tourism, and foreign investment.
The CBCS manages foreign exchange reserves to maintain this peg, intervening in the market when needed to prevent imbalances that could lead to depreciation or inflation. Foreign exchange regulations help safeguard reserves, with large financial transfers abroad sometimes requiring central bank approval.
Denominations and Security Features
Banknotes are issued in denominations of 10, 25, 50, and 100 guilders, each featuring distinct colors and designs that reflect the cultural and historical heritage of Curaçao and Sint Maarten. Security features include watermarks, color-shifting ink, and microprinting. The 100-guilder note has a dynamic security thread that changes appearance when tilted, making counterfeiting more difficult.
Coins range from 1 cent to 5 guilders and are designed for durability. The 5-guilder coin, the highest denomination, is bi-metallic, with a copper-nickel center and a brass outer ring. Raised edges and distinct ridges help users, including the visually impaired, differentiate values.
Cross-Border Acceptance
The Antillean Guilder is not widely accepted outside Curaçao and Sint Maarten. However, many businesses catering to tourists accept U.S. dollars, often displaying prices in both currencies. Change is typically given in guilders, and businesses may apply slightly different exchange rates than the official peg.
Banks and exchange offices provide currency exchange services, while credit and debit cards are widely accepted, reducing the need for cash exchanges. However, certain transactions, such as tax payments and government fees, must be conducted in guilders to maintain financial system stability.
Accounting and Reporting
Businesses in Curaçao and Sint Maarten report financial statements in Antillean Guilders, following international accounting standards and local regulations. Foreign currency transactions are converted based on the exchange rate at the time of the transaction.
Tax authorities require earnings, expenses, and liabilities to be reported in guilders, with guidelines for handling foreign currency gains and losses. Auditors and financial regulators ensure compliance with these standards, maintaining accurate financial reporting.