PARAMARIBO, Suriname, CMC – Governor of the Central Bank of Suriname ((CBvS), Maurice Roemer, says there is no intention of removing small, existing denominations from circulation as it makes plans to issue new denominations of SRD 200 and SRD 500 (One SRD=US$0.02 cents).
The CBvS says that, among other things, macroeconomic developments, inflation, currency depreciation, and the greater demand for currency had led to the decision to issue larger denominations that are expected to come into circulation during the first quarter of next year.
Roemer introducing the two new denominations, also said that there would be no devaluation of the Surinamese currency and that appreciation and depreciation of the currency occurs through supply and demand.
He said that the CBvS no longer has a fixed exchange rate regime.
The Central Bank said that the money supply would also not increase and that banks if they require larger denominations, will have them taken from their account. It said that the banks would circulate the new sects and hand over notes in the same denomination that they demand in larger denominations.
Roemer also dismissed suggestions that more money would be circulated without cover with the introduction of larger denominations.
While there has been steady growth in the number of banknotes in circulation since 2005, there has been a significant increase from 2019, with almost 25 million new banknotes being put into circulation. Between 2021 and 2022, another 10 million banknotes were pumped into the market. There are currently nearly 90 million banknotes in circulation.
In 2005, the value of the banknotes in circulation was about SRD300 million. In 2022, the figure jumped to six billion SRD, and figures released by the Central Bank on Thursday showed that over the years, more and more of the larger denominations – SRD 50 and SRD 100 – have been circulated. The most significant increases are from 2019 to 2022.
The CBvS said that with the introduction of larger denominations, large cash transactions can be settled more efficiently and that the business community can complete transactions with fewer banknotes.
and then , Maurice Roemer, says there is no intention of removing small, existing denominations){kind=link}