January 8, 1999
FLUCTUATION OF X-CHANGE RATES MIRROWS LACK OF TRUST
Fluctuation in the x-change rates for the US dollar and the Dutch guilder
on both the legal as well as on the black market shows that the trust in
the Suriname guilder is daily crumbling. The government's plan to stabilize
the the rates by setting a standard rate has had no effect what so ever.
Suriname businessmen have shown their lack of confidence in the Central
Bank by pricing their wares at a high rate of 850. Even the cambios bought
dollars yesterday for 750-800 and the Dutch guilders for 400-405. These
were sold for 760-825 and 410-425. This shows that the rate for the US
dollar has increased within the last four days by 45 points while the Dutch
guilder went up 15 points. At the local banks the situation was somewhat
different because they bought the dollar for 715 sold them at 725, the
Dutch guilder they bought for 380 and sold for 387. The Central Bank that
had started out at 700-710 later bought for 725-735. It has been predicted
that the rates will continue to increase. There is just no trust.
GOVERNMENT LOSES SF 80 MILLION DAILY IN OIL SECTOR
According to Fred Derby, Chairman of the Service Stations owners Union
and former Chairman of the oil committee, the government is losing between
80 to 90 million daily in the oil sector because of the unification of
the guilder which in his opinion is nothing else but a devaluation. Derby
stated further that even though there is talk of a 50 billion gain because
of the unification that is one side of the coin the other side shows a
that without the package-regulation that should have been enforced together
with the standard rates they will be great loses in income which will also
be felt in the oil sector. The oil companies expect to introduce the new
oil prices next week.
SURINAME AND MALAYSIA WILL WORK
TOGETHER TO IMPROVE PALM-OIL SECTOR
Suriname and Malaysia will soon begin work on the reconstruction of the
palm-oil sector in our country. An investor will be coming this month on
an orientation visit to view the situation. According to Minister of Agriculture,
Saimin Redjosetono, who just returned from a visit to Malaysia there were
about 9 different companies interested in information over Suriname. Malaysia,
the number one palm oil producer in the world today has plans to invest
abroad since they do not have enough ground to keep up with the need on
the world's market. This country has promised to give Suriname technical
aid in the palm oil sector. Malaysia expects that Suriname will come up
with favourable facilities to encourage outside investors. One of the most
important matters at present is the enforcement of the new investment law.
-End-