Avoiding panic buying will keep exchange rate stable

If everyone takes responsibility and avoids panic buying of foreign currency, the exchange rate will remain stable. A key factor is that exporters must comply with the partial surrender of their foreign exchange earnings. Moreover, the public should not be swayed by unnecessary statements from others.
From a macroeconomic perspective, there is no cause for concern. The government has a small deficit, but it is manageable, and the Central Bank of Suriname (CBvS) is working to absorb excess liquidity. There is no need to convert every SRD into US dollars, as this behavior will continue to drive up the exchange rate. Sanjay Gaurisankar, head of the research department at the central bank, said this on the program To The Point via Apintie TV.
He noted that people did not rush to buy foreign currency between January and August 2024. The circumstances then were the same as they are now, yet now there is fluctuation. Gaurisankar explained that the central bank monitors currency movements daily. There is a framework in place within which the bank operates. However, even if the exchange rate fluctuates, the bank will not resort to extreme measures like currency intervention, as this would deplete the country’s foreign exchange reserves.
Meanwhile, the exchange rate, which was close to SRD 28 per US dollar two months ago, is now nearing SRD 34. Everyone was surprised when the rate dropped and is now shocked by its upward trend, said the official. When reviewing the period from January to August, it can be determined that banks were largely able to meet the demand for foreign currency.
However, the demand for foreign currency from some importers remained high, and the demand from certain households and freelance professions even increased. Only the oil companies showed a decline in demand, but this trend has since changed. Oil companies now seem to have a slightly higher need for foreign currency.
Gaurisankar indicates that around US$ 600 million has been exported in the recent period, while approximately US$ 400 million has been spent on imports. This means there is a surplus. According to him, the current issue is at what price people are willing to offer foreign currency. That, in his view, is the problem behind the rising exchange rate. There are also seasonal factors exerting pressure on the rate, such as the holiday season and imports for the upcoming festive month.

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