Central Bank of Suriname

(Centrale Bank van Suriname)

Waterkant 20
Paramaribo
Suriname

Brief History 
Established on 1 April 1957. It is the bank if ussuance and does not make commercial transactions.

Acting Governor
Ingeborg Geduld - Nijman (Mrs.)
Appointed by the government on August 12, 2015

Board Members
L. Pinas-Halfhide (Mrs) (Acting Government Commissioner)
R. Soentik
M. Tuur
C. Linger-Van der Ziel (Mrs)
S. Burleson (Mrs)

The Centrale Bank van Suriname is assigned several tasks as provided in the Bank Act of 1956 (Prevailing Text S.B. 173 of 2010).

The Bank’s duties are as follows:

1. promoting stability in the value of the Surinamese currency;
2. attending to the circulation of money in Suriname with respect to banknotes and facilitating cashless payments;
3. promoting the development of a sound banking and credit sector in Suriname;
4. supervising the banking and credit sector, the pension and insurance sector, currency exchange operations, and transfers of financial resources from and to other countries, all on the basis of the applicable provisions of law; supervision is also aimed at ensuring the integrity of the institutions active in these sectors and sub-sectors;
5. promoting and facilitating payment transactions by Suriname with other countries;
6. promoting the balanced socioeconomic development of Suriname.

The Central Bank of Suriname (CBvS) was established by the Bank Act of 1956 and started its activities on April 1, 1957. Since then, this institution has played a central role in the financial and economic development of Suriname. As a monetary authority, the CBvS' main objective is to maintain the purchasing power of the Surinamese dollar (SRD). The Bank is also the supervisor of the financial sector, banker of the commercial banks, cashier and banker of the State, as well as financial advisor to the Government. Since January 10, 2024, the CBvS has also been designated by law as the resolution authority for failing credit institutions. The CBvS is currently working on a number of fundamental reforms of its own organization and of Suriname's financial system. These reforms aim to modernize and improve the efficiency, stability and integrity of the financial system.

MAIN OBJECTIVE

The main objective of the CBvS is laid down in the Central Bank Act 2022 (S.B. 2023 no.65) and included in Article 9:

1. The Bank's main objective is to achieve and maintain stability in the value of the monetary unit of Suriname, or price stability.
2. Without prejudice to its main objective, the Bank strives to maintain the stability of the financial system, or financial stability.

MANDATE AND TASKS

The mandate of the CBvS is laid down in the Central Bank Act 2022 (S.B. 2023 no.65) and includes the following tasks, as included in Article 10:

1. developing and conducting monetary policy;
2. providing the cash circulation in Suriname;
3. exercising macro-prudential supervision to develop a sound financial system in Suriname in accordance with the applicable statutory regulations;
4. exercising micro-prudential supervision of the banking and credit sector, the pension and insurance sector, money exchange transactions and transfers of financial resources to and from abroad and on the capital market, in accordance with the applicable statutory regulations. Supervision focuses partly on corporate governance, soundness of management and the integrity of the institutions active in these sectors and sub-sectors;
5. taking measures to restore or resolve weak or failing credit institutions in accordance with the prevailing statutory regulations;
6. supervising electronic and other non-cash payment transactions, in accordance with the prevailing statutory regulations;
7. promoting the proper functioning of the domestic and foreign payment systems of Suriname.

MISSION

The mission is derived from the tasks of the CBvS and is as follows:

Promoting monetary and financial stability in Suriname to stimulate national socio-economic development.

VISION

The CBvS sets its direction by establishing its vision. With this vision we want to inform all stakeholders about our ambitions and the future vision of the CBvS.

The vision is as follows:

The Bank is an autonomous monetary and financial authority that is respected and contributes in a professional manner to a prosperous Suriname.

The key points of the vision are:

• Autonomous monetary and financial authority;
• Respected;
• Professional;

CORE VALUES

Core values ​​are the most important values ​​of an organization, which partly determine its culture and are also called the moral compass of an organization.

To achieve our vision, the following core values ​​are considered essential for our employees and the organization as a whole:

• Respect;
• Integrity;
• Cost awareness;
• Professionality;

ORGANIZATION

In order to be able to carry out the tasks assigned by law in a technically responsible manner, modern central banks must enjoy a certain degree of autonomy, based on best practices. Practice shows that there is a positive correlation between the degree of autonomy of central banks and the achievement of the price stability objective. Autonomy and a sound and transparent system of checks and balances, accompanied by timely accountability, are crucial components of good governance.

The CBvS is governed by the Executive Board, consisting of the Governor and a minimum of three to a maximum of five Deputy Governors. The Executive Board is chaired by the Governor, who represents the Bank in and out of court. The Governor and the Deputy Governors are appointed by the Government for a period of seven years. The Executive Board reports to the Supervisory Board.

The CBvS has four directorates. In addition, there are departments with a supporting function that report directly to the Governor. 

The four directorates are:

• Directorate of Banking and Banking Affairs
• Directorate of Monetary and Economic Affairs
• Directorate of Prudential Supervision
• Directorate of Finance and Operations

As of February 19, 2024, the senior management of the CBvS consists of:

• Maurice Roemer - Governor
• Rakesh Adhin - Deputy Governor of Prudential Supervision/Alternate Governor
• Harry Dorinnie - Deputy Governor of Monetary and Economic Affairs
• Ricky Soedamah - Deputy Governor of Banking and Banking Affairs

As of the same date, the Supervisory Board consists of the following members:

• Dharmradj Parohi - Chairman
• Robbie Poetisi - Vice Chairman
• Fidesha Djemesi - Director
• Eric Feller - Director
• Tulsa Koema-Plein - Director
• Daniël Lachman - Director
• Stanley Mathura - Director

 The CBvS offers employment to approximately 435 persons. 

The Centrale Bank van Suriname (CBvS) started its operations on April 1, 1957. Being a monetary authority it has an important role in the economy as it manages the money supply that is available for economic transactions.

The main functions of the Centrale Bank van Suriname are:

• issue and circulation of the national currency;
• stabilization of the value of the Suriname dollar;
• cashier and banker to the government;
• banker to the commercial banks;
• supervision of the financial sector.

In addition, the CBvS manages the country's international reserves to ensure that, at all times,  sufficient gold and foreign exchange reserves are available to meet Suriname's necessary external payment obligations.

Before the CBvS was founded in 1957, there was already money in circulation in Suriname. The first Surinamese coin was minted in 1679 and was called the Parrot Coin. The coin depicted a parrot sitting on a branch with one, two or four leaves. One leaf represented one pound of sugar, which then equaled ten cents. Sugar was legal tender in that period (1667-1761). When sugar lost its role as a means of payment, the period of card money (1761-1827) began. Playing cards were given a face value, were stamped and signed by one or two authorized officials, and were issued as legal tender.

After the period of card money, the period of affiliation with the Dutch monetary system (1827-1940) followed. Dutch coins and banknotes were first used as legal tender, but due to a shortage of money, the Particuliere West-Indische Bank was established in Paramaribo in 1829, which was authorized to put banknotes into circulation. Due to a lack of coins, the bank also issued notes of 10, 15, 25 and 50 cents. However, due to poor management, the bank soon ran into solvency problems. Its banknotes were withdrawn and exchanged for Dutch coins, after which the bank was liquidated in 1948.

After the abolition of slavery in 1863, the economy grew, as did trade and finance. It became clear that more money was needed. To this end, De Surinaamsche Bank (DSB) was established in 1865 as a circulation bank as well as a commercial bank. Despite its name, the bank's capital was largely in the hands of Dutch private individuals and companies. However, the DSB banknotes did show Surinamese symbols and landscapes. To protect the new circulation bank against financial problems, its short-term obligations had to be covered for at least 33⅓ percent by accepted coin currency.

During the Second World War, the export of bauxite from Suriname to the United States increased and the latter became Suriname’s largest trading partner. As a result, the Suriname guilder strayed from the Dutch guilder and was pegged to the U.S. dollar in 1940. This ushered in the period of monetary autonomy (1940-present). In 1954 Suriname gained internal self-government and a number of functions of the local government in Suriname changed, including with regard to the monetary system. Against this background, the Centrale Bank van Suriname was founded as the third and final circulation bank of the country.