The Aruba Central Bank introduced strict restrictions on capital transactions (among others) on March 17th of last year following the COVID-19 pandemic. The restrictions are discussed in my previous article. These restrictions have received serious pushback from the Aruba private sector.
In a public announcement of May 31st, 2021, the Aruba Central Bank made public that it will be gradually easing some restrictions as of June 1st, 2021. Please find the announcement below:
PUBLIC ANNOUNCEMENT
In view of the steady recovery of the Aruban economy, the positive outlook, especially with regard to tourism and the fact that monetary and foreign exchange parameters are at an acceptable level, the Central Bank of Aruba (CBA) has decided to gradually adjust the negative economic effects resulting from COVID-19 pandemic foreign exchange restrictions taken.
As a result, as of 1 June 2021, it is again permitted to make payments to non-residents in the context of:
a. outstanding management fees to non-resident parent, subsidiary or sister companies (this applies to both private companies and supervised financial institutions);
b. inheritance benefits;
c. property purchased;
d. donations and donations.
Furthermore, as of 1 June 2021, resident/natural persons as referred to in Article 1(a) of the National Foreign Exchange Regulation may make transfers to their own foreign bank accounts up to a maximum amount of Awg 50,000 per calendar year.
Finally, as of 1 June 2021, CBA supervised pension funds and insurers will be allowed to:
a. investments abroad up to a maximum amount of Awg 5 million per calendar year;
b. use the local bank account to make payments abroad, including making benefits to insured persons and pensioners abroad and paying reinsurance contributions.
The other foreign exchange restrictions as mentioned in the Public Notices of 17 and 27 March 2020 remain in full force and effect for the time being.
CBA will continue to closely monitor foreign exchange stocks. If it remains within acceptable ranges in the coming months, CBA will consider further easing.
Aruba, 31 May 2021