Suriname has to tackle the numerous illegal exchange offices. Trading under the table in Surinamese and US dollars has been a thorn in the eye for economists for years and presses the official rate.
By addressing these speculators, confidence in the official Surinamese dollar can be restored, states a commission investigating the black trade in the local currency.
This illegal trade flourishes vidly, also with Surinamese in neighbouring countries and in the Netherlands. The Association of Cambio Holders, representing official trade, rang the alarm bell last year at the Ministry of Finance.
The official exchangers of the Surinamese currency against, for example, the US dollar and euros complain about the much more favorable rates that the growing black market can offer customers.
The purchase of US dollars via the cambio‘s has a rate of around 11 Surinamese dollars. Until recently, the black market or parallel market charged 15 Surinamese dollars for the same US currency.
We have to have a separate team that will immediately tackle the exchange offices. The law does not need to be amended, according to the Surinamese site De Waterkant.
There are sufficient tools for the new control teams to address currency speculation at illegal bureaux de change, the researchers argue in an opinion to the new government Santokhi.
The official currency offices are no longer able to compete because of the large price difference with the so-called ‘parallel market‘, she argues. The numerous cambio’s in Suriname are subject to prices for purchase and sale issued by the Central Bank of Suriname (CBVs).