Fiji should continue to maintain a sufficient level of foreign reserves - RBF Governor

Governor of the Reserve Bank of Fiji Ariff Ali says the country should continue to maintain a sufficient level of foreign reserves.

While delivering their Annual Report to the Parliamentary Standing Committee on Economic Affairs, Ali says ensuring a safe and stable financial system is vital in the continued sustainable growth of the economy.

The RBF Governor says inflation in Fiji had declined in the 2017/2018 fiscal year to around 3.1% when compared to an average of 4.4% in the 2016/2017 fiscal year.

Ali says the adverse weather we encountered in the past years contributed much to the rise of prices.

Ali stresses to the members present that the increase in global crude oil prices and shortages in supply are beyond the control of the central banks.

He says inflation at the end of the 2017/2018 fiscal year stood at 4.7% driven from both domestic and imported inflation excluding alcohol, tobacco and yaqona which contributes 2.9% to inflation. 

Ali says Fiji’s foreign reserves remains above the benchmark throughout the review period.

Ali says the Fijian financial system continues to expand, recording a growth of 8.1% or $1.3 billion to reach $19.8 billion in July 2018.

He says commercial banking industry continues to dominate the Fijian financial system taking up nearly 50% of the financial system assets.