Fiji’s foreign reserves remain comfortable at $3,566.1 million.
This according to the Reserve Bank of Fiji is sufficient to cover 6.3 months of retained imports as of 29 September and is anticipated to remain adequate in the medium term.
In its September economic review, the central bank said in terms of macroeconomic risks and outlook, the downside risks to the global economy include elevated core inflation, growing costs of international travel, rising commodity prices, export restrictions, geopolitical tensions, and high-interest rates.
The El Nino phenomenon is a risk that may exacerbate some of these factors further, thus impacting Fiji’s export performance, raising import bills, and lowering tourism revenue.
On the domestic front, risks to the outlook are in the form of introduced changes to the corporate tax and VAT rates, the continued migration of skilled workers, and the impact of climate change.
Additionally, addressing the tourism industry’s current capacity constraints, and prioritising private sector investment is crucial for sustainable growth.
Nonetheless, RBF says given Fiji’s stable economic recovery, assessment of risks, and the comfortable outlook for the RBF’s twin objectives, the Board maintained an accommodative monetary policy stance and kept the Overnight Policy Rate at 0.25 percent in September.
