Fiji’s foreign reserves stand at $3.2bn
29 January, 2022, 8:08 pm
The twin objectives of monetary policy remained intact with foreign reserves holdings at the end of 2021 totalling $3.2 billion, equivalent to 9.9 months of retained imports cover.
This was revealed by the Reserve Bank of Fiji governor and chairman of the board Ariff Ali.
“Foreign reserves are currently (27/01) around $3.2b sufficient to cover 8.7 months of retained imports of goods and services.
“While the rise in import prices poses challenges going forward, foreign reserves are projected to remain adequate, boosted by government loan drawdowns and the resumption of international travel.
“Annual inflation was 3.0 per cent in December 2021, underpinned by higher food and fuel prices which have been spurred by higher global commodity prices, supply chain disruptions, natural disasters and a pick-up in foreign demand,” he said.
“In the next three months, inflation will rise further due to the recent floods which is expected to raise prices of local fruit and vegetables.”
Mr Ali said while rising food and fuel prices were concerning, a tighter monetary policy will not be able to arrest inflationary pressures which were mainly being driven by supply-side constraints.
He said the bank would continue to monitor economic developments as well as risks and align monetary policy if required.