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- 📉 Suriname's economy worsens
Happy Monday!
This week we continue examining Suriname's economic distress as the exchange rate of SRD to USD is expected to continue to rise, causing further increases in goods and services in the country.
Parliament discusses the sudden increase in the exchange rate and failed IMF review
The National Assembly held a special meeting on Tuesday to discuss the exchange rate development.
There is concern that the exchange rate is heading towards SRD 36 for the US dollar. In turn, this is causing more panic about the rising prices of goods and services.
During a discussion on the Excise Duty on Non-Alcoholic Beverages Act, Mahinder Jogi of the ruling party VHP expressed concern about the exchange rate development and asked for a government explanation.
More questions remain for the president to answer about the deal made with the International Monetary Fund. Not only are there unanswered questions regarding the IMF, but the government has also failed its previous review of Surinamese monetary policy.
This failure comes after the already unpopular decision to remove subsidies from gas prices triggering the previous riots on the 17th of February.
This lack of IMF review has led to another missed tranche of payments to the country to support the economy and its budget.
Suriname's inflation is 57.9% year-on-year
The country continues to struggle with inflation and devaluing of the local currency. Currently, the monthly inflation is 3.3% while the year-on-year inflation is 57.9% from February 2022 to February 2023.
The biggest increase in prices has been seen in transportation and operation, maintenance, and transportation repair - largely related to the exchange rate
When it comes to goods, the highest price rises have come from bread, buns, snacks, vegetables, fruits, soft drinks, juices, and water.
Suriname's CPI (Consumer Price Index) package contains 316 items and price surveys are conducted in the larger districts. There are around 630 measurements taken in Paramaribo & Wanica (at about 170 measurement points), Nickerie including Wageningen (at about 115 measurement points), Coronie & Saramacca (at about 105 measurement points), Commewijne (at about 120 measurement points), and in Para (at about 120 measurement points) at a total of about 630 measurement points.
The first suspects are set to appear in court in relation to the February 17 riots while subsequent protest movements continue
The first suspects of the February 17th protests that devolved into riots will appear in court on March 29th and 30th.
The suspects face charges of violent looting, theft, destruction, and incitement.
The prosecution has emphasized that such criminal behavior will not be tolerated and those caught will be arrested and prosecuted immediately.
This news is announced as more protests happened this Friday to oppose the price hikes and cost of living increases.
Individuals behind protests submitted the draft law on the adjustment of the Electoral Regulation. Parliament has been given an ultimatum of one week to consider the draft under threat of further demonstrations.
This law was drafted by Jennifer van Dijk-Silos, a prominent member of the NDP (Bouterse's party).
Suriname remains wary as the country is expecting the result of the Bouterse 8th of December trials this week.
Hugo Essed, a lawyer for the next of kin, expects a verdict against ex-army chief Desi Bouterse in mid to late 2023.
The case against Bouterse and other suspects is scheduled for March 31, where lawyers will plead against the punishment proposal of the Public Prosecution Service.
Acting Attorney General Carmen Rasam appealed in January for 20 years in prison against Bouterse for murder and demanded his capture.
Rasam extensively discussed the witness statements and evidence that show Bouterse's complicity in the murder of 15 men on December 8, 1982.
The president's security adviser, Humphrey Tjin Liep Shie, also stated that security services in Suriname can arrest Bouterse if the appeal judges convict him.