What is ‘AWG (Aruban Florin)’
Aruba’s Florin (AWG) is the national currency of Aruba. It is subdivided into 100 cents and issued by the Central Bank van Aruba.
Breaking down the ‘AWG (Aruban Florin)’
Aruba’s Florin is also known as the Aruba Guilder, derived from the predecessor currency, the Netherlands Antillean Guilder. Its value is pegged to the US dollar at the rate of 1.79 Florin per 1 US dollar.
The history of Aruban Florin
Aruba’s Florin dated 1986, Aruba gained independence from the Netherlands. The Dutch occupied the island with substituting Spanish colonists in 1636, using it as a strategic Outpost to protect the salt exports from South America. The British briefly gained control of Aruba during the Napoleonic wars, the Netherlands regained control in 1816.
Aruba is first asked for its independence from the Netherlands in 1947. In 1954 she became part of the Netherlands Antilles, separate country within the Kingdom of the Netherlands, and Sint Maarten, Saba, Sint Eustatius, Bonaire and Curacao. Aruba, ultimately, have developed their own Constitution in 1985, and held its first parliamentary elections in 1986.
The Netherlands Antilles was originally used for the Dutch Guilder in the 1700s years, Before moving to real between 1799 and 1828. The Dutch Guilder back in 1828, after which it was divided into 100 cents. During the occupation of the Netherlands by Germany during the Second World War, the Guilder was pegged to the US dollar to $ 1.8858 guilders for 1 US dollar. The Dutch changed the peg to 1.79 guilders per U.S. dollar in 1971.
After independence, Aruba has replaced the Netherlands Antillean Guilder with Aruba’s Florin. The new Currency was adopted on the same peg used its predecessor.
The Economy Of Aruba
The economy of Aruba depends largely on tourism, which is dominated by visitors from Venezuela and the United States. Oil refining, basic industry to political autonomy within the Kingdom of the Netherlands, currently plays a lesser role in the economy along with offshore banking sector and a relatively small agriculture and processing industry.
Aruba boasts a high standard of living among the Caribbean Islands and low unemployment. Because of the currency peg and the predominance of tourists from the United States, many businesses in tourist areas take US dollars in addition to Aruban florins. Despite a peg ratio of 1.79, many supermarkets and gas stations use a lower exchange rate is 1.75 Guilder per U.S. dollar. Cash, typically in exchange for 1.77 florins per dollar, while traveler’s checks to use the coefficient of 1.78 florins per US dollar.