Aruba Introduces Exchange Rate Margin Compensation

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.