Prepared by Mazahiro Nozaki and Mariana Torres. The chapter benefited from assistance from MFD within a pilot project to increase the coverage of financial sector issues in the framework of IMF Article IV surveillance.
See Selected Issues chapter “Civil Service Reform: Background and Issues” in Country Report No. 03/357 (November 19, 2003).
After stabilization efforts were undertaken, the CBvS introduced the Suriname dollar (SRD) at a rate of Sf1,000 per SRD on January 1, 2004.
The act was promulgated in 1956 and amended by Decree No. 94 on September 19, 1983.
The system is highly dollarized. See chapter on dollarization.
Foreign exchange proceeds equivalent to the amount of local expenditures required for mining operations must be surrendered to the CBvS.
There are also special exchange rates for infant formula and milk powder imports.
According to the classification by Reinhart and Rogoff (“The Modern History of Exchange Rate Arrangements: A Reinterpretation,” NBER Working Paper No. 8963, June 2002), which focuses on information from the black market rate to determine de facto exchange rate regime, Suriname’s exchange rate regime can be characterized as either a managed or a free float during most of the last two decades.
Bauxite is a raw material for alumina. In 2002 and 2003, revenue from gold and bauxite operations amounted to about one fifth of total tax revenue.