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The Fiji Reserve Bank has recorded its highest level of foreign reserves since the F$912 million in December 2000, says RBF Governor Sada Reddy.
Reddy announced that Fiji’s foreign reserves reached F$920 million today and is expected to further increase to around F$950 million by September end.
The foreign reserves got a boost from nearly F$190 million allocation made by the International Monetary Fund to Fiji, he said.
The IMF has allocated in total US$250 billion to all its member countries as part of its global financial assistance.
The RBF revealed in a statement that Fiji received F$165 million today and a further F$25 million will be received on September 9.
Reddy said this boost to Fiji’s foreign reserves will greatly support Fiji’s balance of payment and stimulate more confidence in the economy and financial system.
He said while the current level of foreign reserves is adequate “it is important that we continue to carry out reforms to increase exports and reduce imports so that the perennial and growing current account deficit of the country at around 20 percent of GDP is brought down significantly to around 10 percent of GDP or below over the next 2 to 3 years”.
“Only then can more liberal fiscal and monetary policies be put in place,” he said.
