US helps Suriname cope with shortage of dollar bills | Economy
The United States came to Suriname's aid to solve problems caused by a major shortage of dollar bills in the country. The Federal Reserve, the US central bank, sends an amount of dollars to the South American country.
The extent of the transfer is unknown. According to the Central Bank of Suriname, the shortage of dollar banknotes is a direct result of the actions of the Dutch Public Prosecution Office, which confiscated a money shipment worth approximately 20 million euros in 2018. This led to a halt in cash transportation activities to and from the country.
Although Suriname has its own Surinamese dollar, many transactions are made in US dollars. This occurs, among others, in the gold, timber and fishing sectors.
As a result of the dollar shortage, the local currency's exchange rate against the US dollar rose sharply. Consumers suffer from this because products are becoming more expensive.
The judge will consider the confiscation of the euros in November
The Fed's dollar bills will now be available to businesses and citizens through local banks. They transfer the equivalent to the Central Bank of Suriname, which in turn settles it with the Americans.
According to the Central Bank of Suriname, normal cash transfers will take place again before the end of the year. At the beginning of next November, the Dutch court is scheduled to hear the complaint filed by the country regarding the confiscation of the euro.
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