‘Fijian economy sound’ |
writer : MERE NALEBA |
The Governor of the Reserve Bank of Fiji (RBF) Barry Whiteside has assured that Fiji’s economy remains sound.He also gave the assurance that RBF would continue to support and work with banks and other key stakeholders to help increase investment opportunities in the country.
“The International Monetary Fund (IMF) Article IV Mission for Fiji concluded its 2011 report just six days ago and noted that our financial system remains sound.
“In view of the relatively comfortable reserves position, RBF has further reduced some exchange controls and will continue to work with banks and other key stakeholders to reduce uncertainties considered as hindrances towards increasing investments,” he said.
The IMF Mission for Fiji has also noted that our economy had increased by two per cent for this year.
Mr Whiteside said the increase of revenues for this year, according to the IMF Mission, was by far the best result of the past five years, and in part reflecting a bounce back after two consecutive years of contraction.
Mr Whiteside said the governing body of all the banks in Fiji still maintained an open door policy in regards to those who were new to the financial system in Fiji.
“It was in this spirit that we approved the acquisition of the former Colonial National Bank by the Bank South Pacific and we will continue to approve other players into the market to allow for healthy competition. Such competition will benefit us all,” Mr Whiteside said.
He said the RBF would continue to encourage banks to lend more and stimulate growth.
“However in the current situation of high liquidity in the banking system, we will remain vigilant to any signs of inflation coming through domestic pressure.
“Liquidity in the banking system, measured by bank demand deposits held at RBF, is currently around $522 million, which stems from growth in reserves coupled with weak demand for credit from the domestic economy,” he said.
No comments:
Post a Comment