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 Its banknotes were withdrawn and exchanged for Dutch coins, after which the bank was liquidated in 1948.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.