AWG - Aruban Florin

The History of the Aruban Florin

The Country of Aruba has used different types of currency throughout its history, which partially reflected the country’s history. The phases can be divided as follows:

• During the 17th and 18th centuries, before the introduction of the Aruban Florin, Aruba used various currencies, including Spanish money and later, Dutch currency.

• In 1828, Aruba became part of the Dutch colonial monetary union and adopted the Guilder (NLG) as its official currency.

• In 1986, when Aruba separated from the Netherlands Antilles to become an autonomous country within the Kingdom of the Netherlands, the government and the Central Bank of Aruba introduced its own currency—the Aruban Florin (iso code: AWG). The exchange rate of the AWG was equivalent to the NLG.

The Aruban Florin was designed to reflect the island's identity, with vibrant banknotes showcasing Aruba’s natural beauty, historical figures, and cultural symbols. On both Aruban Florin coins and banknotes, the island’s rich culture and history are represented.

Aruban Florin denominations

The Aruban Florin comes in different denominations for both coins and banknotes.

Aruban Florin coins

Aruban Florin coins were introduced in the following denominations:

• 5 cents

• 10 cents

• 25 cents

• 50 cents

• 1 Florin

• 2 Florin (currently withdrawn from circulation)

• 5 Florin (replaced by a round, gold-colored coin)

All the coins are minted from nickel-bonded steel, except for the 5 Florin coin, which is made from a copper alloy mixed with other metals. The 50-cent coin is the only remaining square-shaped coin, commonly referred to as the “yotin.”

Aruban Florin banknotes

Aruban Florin banknotes were issued in the following denominations:

• 10 Florin (blue as primary color)

• 25 Florin (orange as primary color)

• 50 Florin (red/purple as primary color)

• 100 Florin (green as primary color)

• 200 Florin (brown as primary color)

The Central Bank of Aruba issued the first banknotes on January 1, 1986 with the denominations of 5, 10, 25, 50 and 100 florin.

In 1990, a new series of banknotes was designed by Aruban artist Evelino Fingal. The art concepts on the banknotes are inspired by ancient Indian paintings and pre-Columbian pottery, combined with images of Aruba's distinct animals.

In 1993, the 500 Florin banknote was introduced, and the 5 Florin note was replaced by a square coin in 1995. 

In 2003, the 10, 25, 50, 100, and 500 Florin banknotes were reprinted with enhanced security features to counteract counterfeiting.  

From 2019 onwards, a new series of banknotes with the theme "Life in Aruba" was officially released in denominations of 10, 25, 50, 100, and 200 Florin. On the observe of these banksnotes, various features of Aruba’s natural creatures are represented, including the green sea turtle, Venezuelan troupial, red land crab, and so on. Moreover, the 100 Florin note won the Banknote of the Year award in 2019 for its artistic design and security features.

Factors Affecting the Current Value of the Aruban Florin

Below are the factors that contribute to the stability of the Aruban Florin in comparison to strong foreign currencies like the USD:

• Domestic Economic Situation: Aruba's economy is primarily driven by tourism, which accounts for the majority of its GDP. As a result, the influx of tourists from countries like the United States significantly boosts foreign currency income. 

• Global Economic Conditions: Economic downturns, pandemics, and global financial crises affect the tourism sector and foreign currency revenue. In particular, the COVID-19 pandemic greatly reduced the number of visitors to Aruba, hence affecting the performance of the tourism sector within the country and the current value of the Aruban Florin.

• Foreign Currency Reserves: The Central Bank of Aruba maintains USD reserves to support the fixed exchange rate with the US dollar. Sufficient foreign currency reserves help maintain a stable exchange rate and support the value of the  Aruban Florin AWG.

• Imports of Goods: Aruba relies heavily on imports for essential goods such as food, fuel, and consumer products. If the prices of these goods increase, import costs rise, putting pressure on the exchange rate and the purchasing power of the AWG.

Looking at Aruban economy, we can see that tourism is the backbone of the country, accounting for large portion of the its GDP. Although Aruba remains the top destination for tourists in the Caribbean, it also faces multiple challenges such as the over-reliance on the US market, environmental impact and economic fluctuations. These factors all can affect the  Aruban Florin’ value.

The Aruban Florin (AWG) remains stable due to its fixed peg to the US dollar. Over the years, the exchange rate has been steady, indicating a positive and stable economy in Aruba. The official exchange rate of the AWG to the USD is:

1 AWG = 0.558 USD

1 USD = 1.79 AWG

As mentioned above, the Aruban Florin is influenced by various factors, particularly its connection to the USD and tourism, which play key roles in determining the stability and value of the AWG in the financial market. However, with the tourism in particular and the economy in general recover from the pandemic, Aruban Florin is now a stable currency that investors might consider among other strong currencies in the world.