Fiji reports adequate foreign reserves

SUVA (Xinhua) – Fiji said yesterday it has adequate foreign reserves that can cover 8.5 months of retained imports of goods and services.

According to a statement released by the Reserve Bank of Fiji (RBF), foreign reserves in the island nation are now adequate at FJD2,338.3 million, sufficient to cover 8.5 months of retained imports of goods and services and anticipated to remain at comfortable levels in the medium term.

The central bank also said the country’s annual inflation slid further to -3.0 per cent in August from -1.6 per cent in July, primarily influenced by lower prices food and fuel.

RBF Governor Ariff Ali said the outlook for the central bank’s twin monetary objectives of low inflation and adequate foreign reserves is intact, although the extended border closure remains a key downside risk for domestic economic recovery going forward.

According to the RBF, Fiji’s economy is expected to contract by 21.7 per cent in 2020 mainly due to poor tourism activity and its knock-on effects on the rest of the economy. This will be the most severe contraction in the island nation’s history.