The country was an independent Dutch territory since the 17th century and was included in a restricted self-governance regime in 1954. As a part of the Kingdom of the Netherlands, Suriname's currency consisted of its own currency, the Suriname guilder (SRG), which was pronounced by the word "gulden" on banknotes. Even though Suriname separated from the Kingdom in 1975, the guilder remained in force until 2004. The Suriname dollar replaced this currency in the wake of the Netherlands' change towards the Euro.

The first banknotes of the guilder denomination were introduced in 1957 by the Central Bank of Suriname to replace the notes made of paper issued through De Surinaamsche Bank. The most common design elements on these notes include the image of a woman and the torch. The note also features the 1957 flag and the national emblem in the reverse's central area.

Understanding the SRG

Take note that the cents that represent the fractions in one Guilder stay in circulation and have denominations of 1, 5, 10, 25, 1, SRD, and 2.50 SRD. Instead of referring to the fractions of an SRG, the coins are now the exact fraction of an SRD. Surinamese guilders are named in honor of the Dutch guilder that served as the national currency for the Netherlands for nearly 500 years before being substituted by the euro (EUR) at the time of 2002. Formerly a Dutch colony, Suriname lies in the north part of South America. Suriname is part of Brazil to the south and Guyana in the west, and French Guiana in the east.

The Surinamese dollar first came into circulation in January 2004 to serve as Suriname's official currency and replaced the guilder at a ratio of 1,000:1. Coins made using the previous currency remained in circulation alongside the new dollar bills, mostly because of convenience and cost reductions. The guilder was hit with increased inflation during the 1990s, and this was a part of the reason behind the decision of the country to change it to its Surinamese dollar. However, the SRD is also in the grip of extreme inflation.

Real-World Examples of the SRG

The worth of a currency is determined by the strength of the economy of its issuing nation. For SRG and its new replacement, the SRG and its replacement one, the SRD, its economy in Suriname is modest and not well-developed. Suriname's economy is heavily dependent on the production of raw commodities, and gold was responsible for more than 78% of the total exports in the year 2019, with oil and unprocessed wood as well (although they make up a smaller portion than the total exports when compared to gold, which is 5% and 3.8%, respectively). Suriname has been through the worst of inflation, with the annual rate at over 34.9 percent in 2020. In contrast, unemployment was 8.7 percent in 2020, and gross domestic product (GDP) is currently at -14.5 percent per year.

Modern Banknotes

The first Surinamese dollar banknotes came out in January of 2004 with the currency expressed in a singular format, exactly like the Dutch custom. The front of the design is that of the Central Bank of Suriname headquarters, located at Waterkant located in Paramaribo. The banknotes also reflect flowers and the bank logo. On their reverse, they show the tree as well as an environment. The most recent version of Surinamese banknotes dollar was released beginning in 2010. The notes look just like previous issues, but they have new dates and enhanced security features like a holographic stripe located on the right side of the reverse. They have also added bank initials to the watermark, and a security thread is a color-shifting, windowed design. Additionally, they have an extra-durable varnish that increases the note's durability.

Surinamese Economy and Strength of the SRD

Suriname, a former Dutch colony, located in the northeastern part of South America, is the smallest country on the continent, both in terms of size and population. Suriname is a little further from that middle position when it comes to gross domestic product, but it also has natural resources, less energy-related costs, and a diverse agricultural sector attracting international investors. A piece in October 2017 of GlobalCapital reported that the economy of Suriname was affected at the end of the boom in commodity prices more than other countries. However, its turnaround has been impressive to a lot of investors. The government responded with budget cuts in addition to floating rates for exchange. This led to a massive increase in inflation in the year 2016.