Banking system liquidity increases to $617.7 million - RBF

The Reserve Bank of Fiji states that the banking system liquidity increased in August by 21.9 percent to $617.7 million, on account of an increase in foreign reserves which more-than-offset the increase in currency in circulation deposits and statutory reserve. 

The RBF states that as at 27th September, liquidity stood at $628.2 million. 

It also says that over the month in August, the Fijian dollar strengthened against the Australian and NZ dollars but weakened against the Yen, US dollar and the Euro. Annually, the FJD appreciated against the AUD, Euro and the NZD but was lower against the Yen and the USD. 

The RBF also says that in the year to June, total exports (excluding aircraft) rose by 2.1 percent largely underpinned by growth in re-exports, while domestic exports declined mainly due to lower exports of woodchips; gold; soft drinks; animal and vegetable oils and fats; bauxite; and chemicals. 

In the same period, imports (excluding aircraft) declined by 4.0 percent attributed to lower imports of machinery and transport equipment (excluding aircraft); chemicals; and animal and vegetable oils and fats. 

Tourism earnings grew by 6.8 percent to total $895.4 million in the year to June 2019, compared to a 4.6 percent growth in the same period in 2018. Cumulative to August 2019, inward remittances grew by 6.2 percent to total $399.7 million, compared to the 10.6 percent growth in the corresponding period last year. The growth in inward remittances was largely driven by gifts, maintenance & donations in the review period. 

Annual inflation in August stood at 1.2 percent, slightly higher than the 0.7 percent in July but significantly lower than the 4.3 percent registered in August last year. 

The monthly outcome was underpinned by higher prices noted for the food and non-alcoholic beverages; alcoholic beverages, tobacco; and education categories. 

The year-end inflation rate is now forecast at 2.0 percent. 

Foreign reserves increased in August to $2.16 billion, sufficient to cover 5 months of retained imports.