“Retailers are angry”

Most of the nation’s retailers have closed their businesses and it’s not mainly because of the panic buying of consumers in response to COVID-19 but because of the shortage of American dollars and the unstable price of the American dollar.

“The retailers are angry and upset because the authorities are putting the blame on them,” said the chairman of the Association of Retailers, Raymond Hasnoe. “We will not urge the retailers to open or close their stores. It is up to them to decide that for themselves depending on the situation in their surroundings, their personal safety and the availability of goods that are needed to restock the shelves. It is up to them to decide if they want to stay open, closed or if they want to adjust their business hours,” said Hasnoe who added that many retailers decided to close their stores because of the frequent inspections of the Economic Control Division (ECD) and the way the authorities are treating them. “The ECD visits us and checks everything. If the prices are higher, we are given a fine and the products are confiscated. That is unfair because it makes it looks like the retailers are the guilty party but that is not the case. It is the situation in the country and in particular the shortage of American dollars and the unstable exchange rates that are forcing the stores to keep adjusting their prices,” said Hasnoe who added that the situation in the world with regards to the coronavirus and the panic that emerged in Suriname during the past couple of days makes it look like everything has been triggered by the virus but it is just a unforeseen turn of events.

“If the government pacifies the market and stabilizes the exchange rates, none of this will have to happen. The government must provide enough American dollars for the purchase of food products and basic goods. Suriname is mainly an imort country. Goods are bought with expensive US dollars and the retailers buy them before selling them in their stores. The suppliers keep working with different exchange rates on a daily basis because of the shortage of American dollars and this is why the retailers must pay more when they buy things from them. So this is why the retail prices keep rising. If the retailer does not raise the prices, he will have to pay the difference from his own pocket and suffer financial losses. A retailer makes a profit of 12 to 15 percent on most of the goods in the stores even though the maximum profit margin is 20 percent. So they are already earning less and if they have to keep paying the difference from their own pocket to cover the higher exchange rates, they opt to close their stores instead. The government has announced that merchants and retailers who stock up on consumer goods and thereby encourage a shortage are committing an economic crime. They could get a hefty fine and even lose their permit. Previous announcements have not prevented consumers from flocking to the stores and to start panic buying. Trade, Industry and Tourism Minister Stephen Tsang explained that the panic buying has resulted in price gouging. “The actions of consumers and retailers are unnecessarily resulting in shortages and price hikes,” said Minister Tsang.