PARAMARIBO — During consultations with the Foreign Exchange Commission, the Association of Surinamese Business (VSB) and the Association of Surinamese Manufacturers (Asfa) on Thursday drew attention to “appropriate treatment of producing export companies within the retention scheme”. It was advocated, among other things, to have sufficient room to keep part of the foreign exchange earned available for necessary foreign payments directly related to production and exports.
Because the Foreign Exchange Committee subsequently indicated that the issue also includes policy aspects that must be discussed with Minister Adelien Wijnerman of Finance and Planning, the two organizations will again consult with the minister. A week ago – September 4 – the VSB and Asfa already met with Wijnerman, during which financial and economic bottlenecks that directly affect the business climate were discussed.
“The currency policy should not be designed in such a way that it limits exporting production companies in their business operations and international competitive position.”
The parties also discussed the retention scheme for exporting companies. That consultation on September 4 was the reason for “further technical coordination” with the Foreign Exchange Commission. The ‘VSB Newsletter’ notes that “follow-up consultations with the policy bodies involved” are important in order to arrive at workable and sustainable solutions for the various topics.
In the conversation with the chairman and members of the Foreign Exchange Committee on Thursday, the consequences of the application of the currency retention scheme for producing export companies were discussed. There are concerns from the business community about the obligations that apply when repatriating and exchanging export proceeds. “For companies that produce for the export market, access to foreign currency is essential for, among other things, the import of raw materials, packaging materials, parts, machines and other means of production,” it is made clear.
Although the VSB and Asfa recognize that currency policy must contribute to a sufficient supply of foreign exchange in the Surinamese economy, they simultaneously point out that it should not be designed in such a way that it limits exporting production companies in their business operations and international competitive position. “Companies that generate foreign currency through exports themselves can make an important contribution to broadening the economy and reducing dependence on the traditional export sectors,” they believe.
Needless to say, the VSB makes it clear that it remains committed to a currency policy that supports macroeconomic stability. But it must leave room for companies to invest, produce and further expand their export activities.
