“Not devaluation but depreciation”

Winston Ramautarsing:

Winston Ramautarsing, chairman of the Association of Economists in Suriname (VES), pointed out that despite the fluctuations on the foreign currency market there still is no devaluation of the Surinamese currency. The economist explained that one can only speak of devaluation when the official exchange rate of 7.52 at the Central Bank of Suriname (CBvS) worsens or rises. The monetary officials are still sticking to this exchange rate. According to Ramautarsing, the Surinamese currency has been depreciated. Depreciation is an economic term that indicates that a certain currency has dropped in value in relation to another currency. “Depreciation is reduction in value so one must pay more SRDs to buy US dollars. One can say that there is devaluation when the price of SRD 7.52 at the Central Bank of Suriname is officially raised above SRD 8 by the monetary authority,” said the economist.

Times of Suriname found out that the local exchange offices which are commonly known as cambios are selling and buying American dollars at various prices. Even the cambios that have received American dollars from the Central Bank are not sticking to a general price. The cambios purchased American dollars for SRD 7.95 to SRD 8.50 while they sold them for SRD 8.05 to SRD 8.85 each on Monday. Two cambios indicated that they could sell only 200 American dollars per person. Other cambios claimed that they could start selling American dollars when they have enough of this currency in stock. Last week the Central Bank of Suriname made foreign currency available to cambios via its bank account at the Surinaamse Postspaarbank (SPSB). The goal of this is for the cambios to sell American dollars at a fixed price. It is reportedly easier to purchase Euros than American dollars. One Euro reportedly cost SRD 9.15 on Monday.