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Fiji’s foreign reserves now stand at $640 million, up from nearly $629 million on May 19, the Reserve Bank of Fiji said.
This, the central bank said was encouraging given that foreign reserves were recorded at $440 million before the devaluation of the Fiji dollar.
“This has assisted in the improvement of liquidity in the banking system, which has now grown to $150 million, from a low of $15 million in late March,” the RBF said.
The RBF said the State was also tightening its purse strings to contain expenditures in non-essential areas.
“Various reforms in areas such as civil service, public enterprises and public financial management will further assist in consolidating the fiscal position,” the RBF said.
It said the government was committed to restraining the fiscal deficit to the budgeted level of 3 per cent of GDP.
“Revenue collections, which were above target during the first quarter, will assist government in restraining the fiscal deficit this year.
“Although the bank expects inflation to increase as a result of the devaluation, growth in prices is expected to moderate to around two percent by the end of next year.”
The RBF said it was closely monitoring the situation and “early indications are that imports have begun to fall. This should help support the balance of payments further”.
