Suriname: Monetary reserve and financial sector complicate release rate

The government’s aim is to release the course, but the situation of the monetary reserve and the financial sector, which had lent a lot of money to the government, makes this difficult, says Minister Armand Achaibersing of Finance and Planning. The release of the exchange rate has also been discussed with the International Monetary Fund (IMF). The minister says that the course must in principle be determined by the market, but measures must first be taken for this.

“You have to take into account the right time and the right level and all other actors in that economy,” says Minister Achaibersing. In order to release the exchange rate, a good monetary reserve is needed and must therefore be rebuilt. The rise in euro and USD street prices is causing a lot of unrest. Minister Achaibersing therefore considers it necessary to discuss the current exchange rate development and rise in prices for goods and services.

The exchange rate determines economic life. For example, prices of goods and services rise as the exchange rate goes up. For our economy, the focus is somewhat more on the US dollar. An important cause is the bygone monetary reverse of the Central Bank of Suriname (CBvS). “As long as there is no good monetary reserve to manage the exchange rate, you will end up in a situation where that exchange rate is determined more by outside than by the CBvS,” the minister said.

Measures are needed. The government has therefore initiated the dollar-retention scheme to guarantee imports of basic goods, fuel and medicines. This measure is also intended to increase the monetary reserve of the CBvS. Part of the retention dollars will be used to rebuild this monetary reserve. The support of the IMF also serves this purpose.


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