## Suriname: Selected Issues

_IMF Staff Country Reports, December 23, 2019_

## Source details

**Canonical URL:** [Suriname: Selected Issues](https://www.imf.org/en/publications/cr/issues/2019/12/23/suriname-selected-issues-48917)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/12/23/suriname-selected-issues-48917/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/12/23/suriname-selected-issues-48917/index.json)
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## Bibliographic details
- Published: December 23, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513524504.002

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### Overview
- Paper analyzes exchange rate pass through in Suriname.
- Extends previous studies by estimating exchange rate passthrough using the nominal effective exchange rate in addition to the bilateral exchange rate against the US dollar.
- Notes the importance of the euro due to Suriname's historic connections with the Netherlands and proximity to French Guyana.
- First study to investigate how various subcomponents of the consumer price index respond differently to exchange rate variations for Suriname.
- Pages: 14; Issue: 392; Volume: 2019; Series: Country Report No. 2019/392; ISBN: 9781513524504; ISSN: 1934-7685; DOI: https://doi.org/10.5089/9781513524504.002

### Methodology and scope
- Uses the nominal effective exchange rate as well as the bilateral US dollar exchange rate.
- Examines CPI aggregate and various CPI subcomponents.
- Sample periods reported: 1980-2019 and 2000-19.

### Key findings
- Cumulative exchange rate passthrough estimates:
  - Around 0.4 (0.6) over six months for the entire sample of 1980-2019 (2000-19).
  - 0.6 (0.7) over one year for the entire sample of 1980-2019 (2000-19).
- A more systemic analysis indicates that the exchange rate passthrough has been declining and becoming more short-lived in recent years.
- Emphasizes heterogeneous responses across CPI subcomponents to exchange rate variations.

### Policy-relevant implications
- Monitoring the nominal effective exchange rate is crucial given the role of the euro in the economy.
- Heterogeneous CPI responses suggest targeted monitoring of price subcomponents when assessing inflation dynamics and monetary policy transmission.
- The decline and shortening duration of passthrough imply that exchange rate shocks may have weaker and more transient effects on headline inflation than in earlier decades.

*International Monetary Fund. "Suriname: Selected Issues", IMF Staff Country Reports 2019, 392 (2019), DOI: https://doi.org/10.5089/9781513524504.002*

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## Content in this bundle

- **Suriname: Selected Issues; IMF Country Report No. 19/392; November 19, 2019**
  - [Suriname: Selected Issues; IMF Country Report No. 19/392; November 19, 2019 (Markdown version)](/-/media/files/publications/cr/2019/1surea2019002.pdf.md){rel="alternate" type="text/markdown"}
  - [Suriname: Selected Issues; IMF Country Report No. 19/392; November 19, 2019 (PDF)](/-/media/files/publications/cr/2019/1surea2019002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/12/23/suriname-selected-issues-48917_