Stabilization
"The Central Bank of Suriname places a very high emphasis on stabilizing the economy, the exchange rate, boosting reserves, raising industrial production, increasing exports, stabilizing exports and balancing the overall economy.
“There has been a boom in our commodity prices, but, as I always say, there is no luck without macroeconomic policies.”
Large wage increases
“Excessive wage increases produce an immediate impact on aggregate demand, which can create high inflation, which ultimately is bad for the economy and the people. If history is any guidance, a 66 percent real salary increase in 1996 led to near-hyperinflation and massive devaluations that did not stop until 2001.
The CBvS will do all it can to reverse any impact on aggregate demand, but we need to learn from history to understand and avoid the potential dangers of such abrupt increases in domestic demand.”
“We would begin increasing reserve requirements in the near-term. In addition, the CBvS would move to increase interest rates in the banking system to reduce private sector credit growth. To be clear, all these measures are intended to reduce demand in the private sector, which means reducing investment, growth, and employment in the economy. However, the CBvS would forcefully act to reduce domestic demand as long as necessary to safely maintain annual inflation rates below 4-5 percent. This is ultimately necessary to avoid the need to devalue the exchange rate.”
Capacity building
“The Central Bank currently is involved in a major process of strengthening and modernizing itself, that means, that we’ve been doing a lot on capacity building. At the same time, we say that the Central Bank would function in a more effective way if the institutionalization process is taken the right way.”
Diversification
“There’s a strong call of the government to diversify the economy further, we say that a lot can be done in the agriculture. We can be a major provider of food to the region, and this is the time that we are able to channelize funding, setting up the infrastructure for those sectors that can break our very concentrated production base. If we’re doing it the right way, I think within a couple of years Suriname will be very strong and diversified with good outlets to the region.”
Information
“We try to inform the public as quick as we can on major developments. We always say that when the Central Bank comes out, it has a major impact on the country. Whenever we come out, it’s well rated and thought over, so that we also bring out the right message.”
“It’s a small and open economy, rumors can run quickly, and any word wrongly stated can have a major impact, so we move carefully. We’re always open to answer questions.”
Monetary policies
“I have repeatedly warned that the Central Bank of Suriname will not hesitate to tighten monetary conditions if we see any indication of renewed inflationary pressures.”
Small states
“We are fully aware that Suriname is a small country with limited financial resources, with a small population of just over ½ a million people, and with a highly concentrated economic base. The high dependency of the country on a few key export commodities is the main vulnerability that affects Suriname. We have to moderate this risk through a number of measures, in particular the timely establishment of the Sovereign Wealth Fund, a continued moderation and stability-orientation of macroeconomic policies, and a permanent attention to maintaining manageable debt levels.”
Structural policies
“We face the challenge to ensure sustainable economic development and diversification away from our extractive industries base. We have chosen to invest in our people, in our human capital. We are implementing programs for early childhood cognitive development, and we are running a pilot in after-school programs for inclusive education. Our health programs extend to vulnerable groups and to rural areas. We are also continuing our focus on building a strong infrastructure. We have just completed the renovation of our international airport south of Paramaribo and are completing the northern highway to French Guiana. We are also boosting energy generation to meet the fast growing demands of our economy.”
Financial literacy
“At the Central Bank of Suriname, we are trying to act as a catalyst for knowledge. We have started an ambitious program to train young graduates in various central bank areas, with hands-on experience with policies and cooperation with other institutions and we intend to exchange young trainees with other organizations. We are also pushing beyond the central bank through activities such as financial literacy, an economics training program to educate local journalists, or an awareness seminar on money laundering and combatting the financing of terrorism.”