Exchange Rates, Inflation and Stupid Government Decisions
Stupid government people making stupid government decisions. Some say this is just another normal day in my home country of Suriname. And I use the word "home" reluctantly as my patriotic side has been absent for quite a while now, which doesn't bother me, as patriotism and borderlines are just another roadblock in the fight for a peaceful united world. But I digress. The reason why I'm so bothered at the moment, is because today the government and the central bank along side them have decided to implement a new approach to combatting inflation. The USD exchange rate, previously regulated by the central bank, is being 'let loose' as of today. This means that supply and demand will decide each day what the official exchange rate is. The central bank will publish the official rate 3 times a day every day.
In theory this is a good plan to get the economy back on its feet, providing realistic prices in stores and all around. In practice this is not how it works of course. Far from it. Those in the business of exchanging foreign currency underground now have even more freedom in influencing the rates in order to profit more from it. This means even more uncalled for fluctuations in pricing, but then only upwards, as prices never fluctuate downwards in Suriname. The ratio of inflation compared to income will undoubtedly be hit the hardest. Another unresearched implementation of government doing more bad than good as intended. In time the storm will probably settle, I strongly believe this, but as a short term solution, the current is not a very practical one. Meanwhile I will continue to diversify my finances so that this does not affect me as much.
What stupid financial decisions has your country recently made?
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Well here it is always tax and spend. Which means the working folk here have to pay more taxes so the people that dont work get more.
Systems like that should all be burned down some day. The sooner, the better. I'm willing to pitch in for good souls who are terribly down on their luck and circumstances, but not lazy bums doing nothing to change their predicament.