President Chan Santokhi wants to solve the problem of non-cash dollars Due to the fact that the case surrounding the confiscated money transport of 19.5 million euro, is still pending in the courts in the Netherlands, Surinamese financial institutions have not carried out money transport abroad for a long time. Since then, there has been a shortage of cashless funds at the commercial banks to meet market needs. According to President Chandrikapersad Santokhi, the lengthy trial at the court in the Netherlands has caused enormous reluctance in the financial sector since 2018 for follow-up money transports. He thinks that it’s high time for these money transports to run normally again as to eliminate the shortage of cashless funds.
The deficit puts enormous pressure on the exchange rate. The head of state said that there is a lot of cash in the country, but it cannot be converted into cashless money. The President said that having a lot of cash does not mean that you have a lot of money in your giro system. And because you cannot transfer and replenish for all kinds of reasons, because there is a scarcity. What is happening now, is that a lot of importers are looking for money now and have to transfer money by giro, but they cannot do that. Not because they don’t have money, the importers and cambios have money, but not cash which is needed to place order abroad, and there is now considerable pressure. The president is dealing with the problem surrounding the blockage in the currency exchange.
The head of government said that they are doing everything they can to find a solution to the country’s financial problem. Recently in the government council the decision was taken to restart money transport, so that the CBvS can again intervene in the foreign exchange market to stabilize the exchange rate. The head of state said in an interview with his Communications Unit that the solution is to have the money transports take place normally again. That order has already been given to the governor and the CbVS is already working on it. A few transports have since taken place to America. The government is renegotiating the currency interventions with the International Monetary Fund (IMF).
In addition to the intervention, the government has introduced a retention scheme, which means that all export companies that bring in foreign currency must make 35% of it available to the banks. This allows the banks to receive more cashless dollars to supply the market. The money from retention and interventions must go to the sectors that desperately need the money to be able to import. President Santokhi said that a long list of importers has now been drawn up, all of whom need money. But priority is given to imports that will help society have access to sufficient food and medicines and the oil companies guarantee that fuel.
President Santokhi further stated that more measures will be taken by the government, CBvS, the Foreign Exchange Commission, banks and cambios. These will be presented and implemented in the coming days.
He makes an urgent appeal to society not to contribute to the price increase, but to do everything to reverse that price to a level that the market actually demands on the basis of pure supply and demand and not speculated supply and demand. He is confident that the exchange rate will recover, according to a message from the president’s office.