Monday, June 17, 2024
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Foreign reserves stable, says RBF

The Reserve Bank of Fiji has revealed that foreign reserves remain comfortable at $3.6 billion, sufficient to cover 6.3 months.

This has been highlighted by the Governor of the Central Bank Ariff Ali, he said that this was sufficient to retain imports of goods and services and the medium term outlook is above the benchmark of four months of import cover.

Ali said that the current monetary policy stance will continue as long as the outlook for inflation and foreign reserves are within the comfortable range.

He said the Central Bank would continue as long as the outlook for inflation and foreign reserves are within the comfortable range.

“The RBF will continue to closely monitor global and domestic economic developments, and align monetary policy accordingly.”

The Central Bank has also highlighted that domestically, the tourism led to economic recovery has kept pace and the recently announced in the 2023-2024 National Budget, and will provide additional stimulus and support economic activity going forward.

On the financial sector, the Governor highlighted that there has been a continuous expansion in private sector credit activity (6.5 per cent in May) while the more than ample banking system liquidity ($2.5 billion as of 12/07) has kept lending rates at historically low levels.

Overall, the financial system remains stable with adequate capital and provisioning.

Ali stated that “headline inflation has been on a declining trend and moderated to 0.8 percent in May from the 1.4 percent recorded in April, mostly owing to lower fuel and kava prices.

However, given the recently announced tax increases in the FY2023-24 national budget, inflation is expected to rise from August onwards and register at 4.7 percent at the end of the year before subsiding to 2.5 percent by the end of 2024.”

Ilaitia Ravuwai
Ilaitia Ravuwai
Journalist | news@fijilive.com

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