Foreign reserves increase to $2.777 billion

Fiji’s foreign reserves have increased to $2.777 billion at the end of April, compared to $2.179 billion in February.

The Reserve Bank of Fiji says this is sufficient to cover 8.6 months of retained imports.

The RBF says this has resulted from higher external Government loan drawdowns, lower import payments, and other receipts.

It says in terms of the Bank’s twin objectives, inflation remains low and foreign reserves are ample.

In March, headline inflation slipped back into negative territory to -1.2 percent, following its short-lived rebound in February.

This was due to lower prices recorded for local food, alcohol, and yaqona.

In the near term, inflationary pressures are expected to come from increases in crude oil and global food prices coupled with potential weather-related shocks.