In face of the strong movements in Euro/US-dollar exchange rates in recent weeks, the Central Bank of Suriname has reiterated its commitment to stable, smooth functioning foreign exchange markets.
It has noted that even though the Euro has lost value compared to the US-dollar, the Surinamese dollar (SRD) exchange rates for both currencies have tended to move upward during the same period.
The Bank attributes this movement to arbitrage by merchants that have taken up large positions in the Euro. Such positions have tended to become risky and are being swapped for positions in the US-dollar. This is increasing the SRD/US-dollar rate. However, the domestic market does not want to sell Euros below the high value they were initially bought for.
The Bank has announced it will resolutely deal with speculative attacks and won’t hesitate to enforce additional monetary measures as needed to restore tranquility. It maintains that the solid economic position and the ample international reserves provide enough backbone to halt any attacks on the exchange rates.
