January 5, 1999
Standardization of the X-Change rates alone is not enough to bring about a better investing climate to the Suriname economy This should be enforced along with a number of other regulations, a sort of package, that together would help support the economy. This however is not the case. There is also no trust in the monetary-financial policy of the Central Bank. Reports from the ASFA and VSB show that they do not expect much from the new fixed rates of foreign currency. According to John Wijdenbosch, Chairman of the ASFA, other regulations as the investment law and a lower credit interest at the banks should also have been enforced since these two matters press heavily on Suriname's chances to encourage investments both local and foreign. Wijdenbosch said he did not know if over two months there will again be a change in the X-Change rates because the system of the Central Bank had failed. There is no trust Wijdenbosch reported a higher X-change rate can have a disasterous effect on buying power. If nothing is done about the high interest rates there will be no further investments. VSB's director Bueno de Mesquita said that the new regulation of the Central Bank was good enough for him. He said that this came as a relief for all exporters who had to sell their dollars at 396 to the bank. However he was also of the opinion that other regulations should be enforced to keep the fixed rates stable. De Mesquita stated that the budget should remain in balance without monetary financing. He stated further that without the necessary political stability no policy will work. There is just no trust.
Even though the government has enforced a new standard rate for foreign currency, this has had little effect on the cambios and on the black market. Yesterday some cambios bought the dollar for 725 - 730 and the Dutch guilder for 375 - 385. The black market vendors bought the dollars for 730 - 770 and the Dutch guilder for 380 - 390. Blackmarket vendors reported that in comparison to the ending of the year the rates have gone up by Sf 10 guilders. Most cambios are buying but not selling where as the black market is and their rates are 740 -750 for the dollar while paying 385 - 400 for the Dutch guilders. Some believe that the rates will continue to increase before long. Shops that have their goods priced in US$ dllars have an even higer rate which varies between 740 - 765.
Minister Errol Alibux of Natural Resources has said that all accusations of him being involved in drugs-trafficing were fables. Alibux has reacted to the accusations made by William Wolfe, an American witness in the case against Desi Bouterse. Wolfe had testified that Alibux had told him of transporting drugs from Suriname to Cuba. Alibux reported that it was not the first time he had heard of Wolfe. Around President Wijdenbosch's vist to China there was a report by Wolfe in which he had mentioned the names of a number of people from both the opposition as the coalition that were said to be involved in drugs. He even went so far as to accuse the Suriname Ambassador in China to be in the drugs network. The Minister said that now an officail visit has been planned for Cuba, Wolfe comes up with accusations that he and others together with Fidel Castro are involved in drugs. Alibux said that he does not know why his name was called but that this matter is another case of bad talking the government.