IMF Staff Country Reports

Suriname: Selected Issues

December 23, 2019

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Suriname: Selected Issues, (USA: International Monetary Fund, 2019) accessed December 22, 2024

Summary

This Selected Issues paper on Suriname analyzes exchange rate pass through in Suriname. While the previous studies exclusively focused on the bilateral exchange rate against the US dollar, this study, in addition, estimates exchange rate passthrough using the nominal effective exchange rate. This is crucial given the strong presence of euros in the economy due to its historic connections with the Netherlands and French Guyana being one of its neighbors. The study is the first to investigate how various subcomponents of consumer price index respond to exchange rate variations differently for Suriname. The results suggest a cumulative exchange rate passthrough of around 0.4 (0.6) over six months and 0.6 (0.7) over one year for the entire sample of 1980-2019 (2000-19). A more systemic analysis suggests that the exchange rate passthrough has been declining and becoming more short-lived in recent years.

Subject: Consumer price indexes, Dollarization, Exchange rates, Foreign exchange, Inflation, Monetary policy, Nominal effective exchange rate, Prices

Keywords: Auction rate, Caribbean, Consumer price indexes, CR, Dollarization, Estimates Exchange rate passthrough, Exchange rate depreciation, Exchange rate granger, Exchange rate movement, Exchange rate passthrough in Suriname, Exchange rate restriction, Exchange rates, Fuel rate, Inflation, ISCR, Market, Market participant, Market rate, Nominal effective exchange rate, Rate, Suriname dollarization, U.S. dollar exchange rate

Publication Details

  • Pages:

    14

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2019/392

  • Stock No:

    1SUREA2019002

  • ISBN:

    9781513524504

  • ISSN:

    1934-7685