Central Bank of Suriname adjusts SRD cash reserve percentage

As part of its monetary policy, the Central Bank of Suriname (CBvS) on December 30 raised the SRD cash reserve percentage from 35 to 39% in consultation with the executives of the local commercial banks. The adjustment of the monetary policy is aimed at addressing the excess liquidity issue. The

CBvS explained that the excess liquidities form a (potential) source of pressure on the exchange rates and the prices of goods and services. It is therefore necessary to address the excess liquidity issue. The adjustment of the SRD cash reserve percentage will reduce the interior demand which will have a positive impact on the home inflation and the exchange rates. The CBvS did not adjust its monetary policy sooner because of the COVID-19-pandemic which hit the Surinamese economy hard. This adjustment would only have added to the pressure on the nation’s economy.