b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (Continued)Foreign currency risk TheGroupmanagestradetransactionsbyoffsettinglocalpaymentsandlocalreceivablesForeigncurrencyriskistheriskthatthefairvalue inSRDcreatinganaturalhedgefortheSRDorfuturecashflowsofanexposurewillfluctuate transactions.because of changes in foreign exchange rates. TheGroupsexposuretotheriskofchangesin Thefollowingtabledemonstratesthesensitivityforeign exchange rates relates primarily to theto a reasonably possible change in US$ and GroupsoperatingactivitiesofsubsidiaryGOw2 SRDexchangerateswithothervariablesheld(asrevenuesandexpensesaredenominatedina constant.TheimpactontheGroupsprofitbeforeforeigncurrency)andtheforeigncurrencyswap taxisduetochangesinthefairvalueofthenonagreement(refertoSection6.4). designatedforeigncurrencyderivatives.Foreign currency risk sensitivity analysis( x US$ 1,000) Change in US$ rate Effect on profit before tax2019 5% 458-5% (458)2018 5%- -5%- Commodity price risk Theanalysisisbasedontheassumptionthatchanges in the crude oil price result in a change of TheGroupisexposedtotheriskoffluctuationsin 10%inthesalepricesoftheoilproducts,withallprevailingmarketcommoditypricesonthemixof othervariablesheldconstant.Reasonablypossibleoilproductsitproduces.TheGroupspolicyisto movementsincommoditypricesweredeterminedmanage these risks through the use of contract- basedonareviewofthelasttwoyearshistoricalbasedpriceswithcustomers.Asmentionedin pricesandeconomicforecastersexpectations.themarketrisksectionabove,Staatsolietakesaconservativelow-priceapproachforitsworkprogram and budget. ( x US$ 1,000)Increase / decrease in Effect on profit before taxEffect on profit before tax crude oil prices for the year ended 31 Decemberfor the year ended 31 December 2019 (increase/decrease) 2018 (increase/decrease)+10% 44,116 45,962-10% (44,116) (45,962)Liquidity risk analysisforproductionandconservativepriceassumptions,andrestrainedcapitalexpenditures.LiquidityriskistheriskthattheGroupwill Furthermore,optionaldebtisavailablewithinencounterdifficultyinmeetingobligations thecreditagreementinaccordancewiththeassociatedwithfinancialliabilitiesthataresettled debt basket. Cash in excess is being managed bydeliveringcashoranotherfinancialasset. by the corporate treasury department through TheGroupmanagesitsliquidityriskbasedon intercompanycashpoolingagreementsbetweenreportingcovenants,encompassingsensitivity Staatsolie and its subsidiaries.123'