Suriname started the period with its exchange rate fixed but some limited monetary policy; it then had a long period of repeated exchange rate adjustments and more or less incoherent monetary policy (plus rising dollarisation), before a gradual process of developing instruments and increasing focus on price stability, punctuated by a brief period of loose exchange rate targeting.

Years Targets and attainment Classification
1974-83 (full independence from November 1975, but local control of economic policy before that) exchange rate fixed to USD with narrow spreads set by central bank; monetary policy operated via credit ceilings (typically not well observed or enforced), banks free to set interest rates; fiscal deficits mostly financed by bank credit augmented exchange rate fix AERF
1984-2000 initially official exchange rate remains fixed but widening parallel market spread in response to growing import licensing and controls, in addition to price and other direct controls; multiple exchange rates from 1992, with average depreciating strongly; parallel market legalised 1993 and interbank market permitted; recurring large fiscal deficits monetarily financed, with inflation peaks in 1987 (>60%), 1995 (>500%), and 1999 (>120%), economic performance also adversely affected by guerrilla activity much of 1980s; government issues savings certificates from 1987, bonds from 1990; exchange rate unified mid-1994, then floated, in context of wider fiscal-monetary stabilisation policies, then stabilised from early 1996, but parallel market continues with varying spreads; gold certificates issued by central bank from 1995, used as monetary policy instrument (together with credit ceilings); growing dollarisation; from 1998 renewed fiscal and monetary expansion and inflation, with widening parallel market spread despite repeated official rate devaluations; weaknesses in key statistical data available unstructured discretion UD
2001-2010 new government makes efforts at stabilisation plus some forex liberalisation and financial sector reform; reserve requirements introduced 2001; currency reform 2004; exchange rates reduced to two (plus black market); over time official exchange rate remains pegged to USD while commercial rate is also managed and relatively stable; dollarisation stays high; monetary policy still operated mainly via reserve requirements and forex intervention; inflation peaks lower, 30% in 2003 and 18% in 2008 loosely structured discretion LSD
2011-15 exchange rate devalued and unified with introduction of a wide band vs USD; securities and money markets remain very limited, monetary instruments still direct; credit dollarisation down but deposit dollarisation remains high loose exchange rate targeting LERT
2016-17 exchange rate floated March 2016, after devaluation late 2015, in context of sharp commodity price falls; some further depreciation, and spike in inflation (to >50%) 2016; Treasury bills (long talked of) finally issued 2014, with monthly auctions from May 2016 providing non-monetary financing of fiscal deficits and allowing eventual shift to OMOs as indirect monetary instrument; move to reserve money targeting, but exchange rate still stabilised loosely structured discretion LSD

Selected IMF references: RED 1975 pp42-4, RED 1979 pp28-8, 41; RED 1982 pp24-5, 39; RED 1984 pp25-6, 41; RED 1985 pp26-9; RED 1986 pp1, 24-5, 38; RED 1987 pp1-2, 21-2; SR 1987 pp1-3, 9-11; RED 1990 pp32-4; RED 1992 p7; RED 1993 pp26-7; SUR 1993 pp3, 8-9; RED 1994 pp22-6; SUR 1994 pp3-4; REDSI 1997 pp14, 16, 21-2; SR 1999 pp4, 5, 12-14; RED 2001 pp7-8, 20-7; SR 2002 p17; SISA 2003 pp14-19; SI 2005 pp13-18, 22-8, 34; SR 2005 pp5-6, 16-17; SR 2008 pp14, 19; SR 2009 pp14-15; SR 2011 pp10-11; SR 2012 pp11-12; SISS 2013 pp7-12; SR 2016 pp5, 14-17; SR 2018 pp14-16; SISS 2019 pp6-7, 9-12; SR 2019 pp11-13.

Other references: Fritz-Krockow et al. (2009).

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