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The Association of Banks in Fiji (ABIF) says the devaluation of the Fiji dollar by 20 per cent will have a ‘positive impact’ on Fiji’s export and tourism industry.
ABIF chairman John Cashmore said this would in turn help the local economy.
“As noted by the Reserve Bank, everyone should be prepared for an increase in the cost of living, but this is expected to subside over the next twelve months,” Cashmore said.
The association did not make any comments on the likely impact this devaluation would have on its interest rates.
The RBF has asked commercial banks to keep interest rates spread at four per cent by December end this year.
The central bank said this policy would be reviewed in 12 months time.
The three Fiji-based commercial banks declined to make any comments when contacted.
Cashmore, who heads Westpac Banking Corporation, said a statement would be made via ABIF.
Colonial Bank general manager Laurie Mellsop said: “The Chairman of the ABIF will be issuing a media release shortly. I will have nothing further to add to that release when it is issued”.
ANZ Fiji general manager Robert Bell said the bank would not make any statements on the matter as yet.
