The National Ordinance Exchange Rate Margin Compensation was introduced effective April 1st, 2015. This levy has been introduced with the purpose to finance the (regulatory) activities of the Central Bank of Aruba (“CBA”).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 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 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.
Published by Lincoln D Gomez
Lincoln D. Gomez is a corporate lawyer based in Aruba. He is admitted to the Bar in both Aruba Curacao, Sint Maarten & BES-islands. He holds degrees in International Tax & Financial Services from Thomas Jefferson School of Law, San Diego, CA (LL.M.), a law degree from the Universiteit van Aruba (LL.M.) and Biology and Chemistry from Saint Leo University, Tampa, FL He is co-founder and managing-partner of Gomez & Bikker www.gobiklaw.com. His practice concentrates on Aruba corporate law, intellectual property, aviation finance & registration, labor law, real estate and civil litigation. He is an author and lecturer on Aruba law. His publications are in the areas of: the civil code of Aruba, labor laws, intellectual property, aviation finance and corporate law. His clients have dubbed him "the Aruba Guy" when it comes to finding creative solutions to complex legal issues in Aruba. View all posts by Lincoln D Gomez
