Purpose

The system of reserve requirements in Suriname is imposed on commercial banks’ liabilities in domestic currency and in foreign currency. Reserve requirements on domestic currency liabilities were introduced on May 15, 2001, while that on foreign currency became effective as of February 12, 2003. The reserve requirements in domestic currency serve predominantly a monetary control function. They restrict commercial banks capacity to lend, and hence aggregate demand. Reserve requirements in foreign currency are intended to provide protection against liquidity/availability risk, and to enhance the stability of the Suriname dollar given the highly dollarization of the Surinamese economy (deposit and credit dollarization of ±80% and 55%, respectively).

 

Technical issues

Reserve base

The reserve requirements are imposed on the deposit liabilities of the commercial banks, referred to as the reserve base. The reserve base comprises transferable deposits, savings deposits, time deposits and other funds that the public has entrusted to the banks. Public refers to non-bank financial corporations, non-financial corporations and households.

Holding of reserves

Reserve requirements must be maintained in the currency of denomination of the deposit liabilities; reserve requirements in US dollars and in euros are therefore payable in the respective currencies. Under the domestic currency reserve requirements the commercial banks are required to retain reserve balances with the Central Bank of Suriname (CBvS) in the form of non-interest-bearing deposits. As for US dollars, 40% of the reserve requirements must be held with the CBvS in a USD reserve account and 60% will be held directly with foreign banks into negotiable bonds. Of the reserve requirements in euro, 70% must be held with the CBvS in a EUR reserve account and 30% will be held by the commercial banks themselves at foreign banks into negotiable bonds. 

Reserve ratio

The reserve ratio is uniform for all the banks and all deposit liabilities; i.e. the same rate applies to each bank and to each type of deposit liability. However, the rate is differentiated by type of currency denomination. The reserve ratio for domestic liabilities stands at 44%, while the ratio for foreign currency liabilities is 50%. The following table summarizes the reserve ratios prevailing from 2001.

 

Maintenance period

On July 14, 2021, the CBvS introduced the required reserves averaging system for domestic currency to support short-term liquidity management of the banks The reserve maintenance period for required reserves in domestic currency lasts two weeks (14 days), and starts on the Wednesday and ends on the second following Tuesday. Every two weeks on the Wednesday, the required reserves are calculated based on the four-weeks moving average of the reserve base.

The reserve maintenance period for foreign currency liabilities is one week (7 days). Averaging of reserve requirements in foreign currency liabilities during the maintenance period is not permitted. Every Wednesday the required reserves are calculated based on the four-weeks moving average of the reserve base. 

Penalty

A commercial bank that fails to meet the reserve requirements in domestic currency, i.e. holds less deposits with the CBvS than required, is subject to financial penalty. The penalty shall be imposed in the form of interest on the amount of the shortfall during the 14-day maintenance period. The interest rate to be applied is equal to the interest rate on the five-day lending facility of the CBvS plus a premium of three percentage points. The CBvS is allowed to debit the fine amount from the SRD working account of the non-compliant bank held at the CBvS. There are no financial penalties if a bank fails to hold sufficient reserve balances in foreign currency. However, moral suasion is used by the CBvS to ensure compliance. 

Financing from reserves

The CBvS in consultation with the commercial banks created a housing funding facility on February 12, 2004. The principal objective of this facility is to provide mortgages at affordable interest rates to middle-income groups and thus help alleviate the housing problem in Suriname. Banks can only extends loans to build or buy a new house, or to repair, renovate, expand and complete an existing house.

Under this facility, commercial banks are allowed to use a maximum of 10% of their reserve base to on-lend for private residential construction. The interest rate on the mortgage loans is fixed at 7% per annum. The facility is meant for households with an income of maximum SRD 35.000 and the maximum that can be borrowed by each household is SRD 1.600,000. The loans have a maturity of up to 30 years. The financing for newly-built residential houses with a total floor area between 40 m2 and 150 m2. Existing houses can be repaired/renovated and expanded up to a floor of 275 m2. Households are also allowed to purchase a plot, under the strict condition that a house will be built on the land for private residence.  

  

Click here for more data on required reserve for the Surinamese currency in Excel-format.

Click here for more data on required reserve for the foreign currency in Excel-format.

Exchange RatesMarch 09th and until further notice

Currency Buying Selling
USD 14,018 14,290
EUR 16,628 16,959
GBP 19,396 19,782
ANG 7,699 7,852
AWG 7,784 7,939
BRL 2,438 2,485
TTD 2,063 2,103
BBD 6,907 7,044
XCD 5,190 5,293
PER 100 GYD 6,657 6,790

Gold CertificatesMarch 09th and until further notice

Coupon SRD
5 gram 7.814,97
10 gram 15.629,94
50 gram 78.149,69
100 gram 156.299,39
500 gram 781.496,94
1000 gram 1562993,88
Gold LME: USD 1.701,00 /tr.oz.

Inflation

    Average End-of-period
2022   52.4 54.6
       
2023   Month-to-month Year-to-year
Jan   3.7 55.6
Feb   3.2 57.9
Mar   3.2 59.6
Apr   5.7 65.4
May   2.4 65.0
Jun   2.3 54.6
Jul   3.0 56.6
Aug   2.0 53.5
Sep   1.5 50.8
Oct   1.0 42.9
Nov   0.6 38.7
Dec*   0.1 32.6

*) Preliminary figures

 

 

Weighted Average RatesFebruary 22 - 15:00h (Transfers)

Currency Buying Selling
USD 35.447 35.663
EUR 38.117 38.496
GBP 44.892 45.772
ANG 19.476 19.858
AWG 19.693 20.079
BRL 7.185 7.326
TTD 5.214 5.317
BBD 17.474 17.816
XCD 13.129 13.386
GYD PER 100 16.843 17.174
CNY 4.929 5.025

Weighted Average RatesFebruary 22 - 15:00h (Banknotes)

Currency Buying Selling
USD 33.290 34.343
EUR 34.883 35.643
GBP 42.160 42.995
ANG 18.291 18.653
AWG 18.494 18.861
BRL 6.748 6.881
TTD 4.897 4.994
BBD 16.411 16.736
XCD 12.330 12.574
GYD PER 100 15.818 16.132
CNY 4.629 4.721

Gold CertificatesFebruary 22

Coupon SRD
5 gram 23.238,54
10 gram 46.477,08
50 gram 232.385,38
100 gram 464.770,75
500 gram 2.323.853,75
1000 gram 4.647.707,51
Gold LBMA USD 2.026,75 /tr.oz.

Weighted Average Accepted
OMO Rate

Auction ID Auction Date Rate (%)
CBTD240221-1W 2024-02-21 30,8
CBTD240214-1W 2024-02-14 32,1
CBTD240207-1W 2024-02-07 27,4
CBTD240131-1W 2024-01-31 28,4

Standing Lending Facility Interest Rate

Auction ID Auction Date Rate (%)
CBTD240221-1W 2024-02-21 37,0
CBTD240214-1W 2024-02-14 38,5
CBTD240207-1W 2024-02-07 32,9
CBTD240131-1W 2024-01-31 34,1
Balance sheet

Inflation

    Average End-of-period
2022   52.4 54.6
       
2023   Month-to-month Year-to-year
Jan   3.7 55.6
Feb   3.2 57.9
Mar   3.2 59.6
Apr   5.7 65.4
May   2.4 65.0
Jun   2.3 54.6
Jul   3.0 56.6
Aug   2.0 53.5
Sep   1.5 50.8
Oct   1.0 42.9
Nov   0.6 38.7
Dec*   0.1 32.6

*) Preliminary figures