The Vereniging Surinaams Bedrijfsleven (VSB) and the Associatie van Surinaamse Fabrikanten (ASFA) want exporting manufacturing companies to be able to retain sufficient foreign currency for necessary overseas payments. The organisations discussed this issue with the Deviezencommissie on Thursday, September 10.
The reason for the consultation was concerns within the business community about the rules for repatriating and converting export proceeds. Exporting companies need foreign currency for, among other things, the import of raw materials, packaging materials, parts, machinery and other means of production.
VSB and ASFA acknowledge that foreign exchange policy must contribute to an adequate supply of foreign currency in the Surinamese economy. According to the organisations, however, the rules should not result in restrictions on the operations and international competitive position of exporting manufacturing companies.
They point out that these companies earn foreign currency themselves through their export activities and can thus contribute to economic diversification and reduced dependence on traditional export sectors.
Foreign currency needed for production
During the consultation, VSB and ASFA called for appropriate treatment of exporting manufacturing companies under the foreign currency retention scheme. The companies should be given sufficient scope to retain part of their export proceeds in foreign currency.
According to the organisations, these funds must remain available for overseas payments directly related to production and exports.
The Deviezencommissie indicated that the issue also requires policy decisions that must be discussed with the Minister of Finance and Planning. VSB and ASFA will therefore raise the matter during follow-up consultations with the minister.
The business organisations advocate a foreign exchange policy that supports macroeconomic stability while at the same time giving companies sufficient scope to invest, produce and expand their export activities.
