Liquidity talk: $300m is sufficient, says RBF Governor

Reserve Bank of Fiji governor Ariff Ali speaks to members of the media during a press conference at the Reserve Bank of Fiji building in Suva. Picture: JONACANI LALAKOBAU/FILE

FIJI’s current liquidity of $300million is sufficient to meet the demands of the economy and the public.

Reserve Bank of Fiji Governor Ariff Ali highlighted this issue in Suva yesterday in a press conference that was called specifically to address the issue of liquidity following media reports over the past few days.

“People are saying that $300million of liquidity is not sufficient, our view is that liquidity of $300million is more than sufficient, off course it has come down but it’s more than sufficient,” Mr Ali said.

He said at one point in time during the 1990s, the liquidity was $1million.

Mr Ali said the RBF controlled liquidity within the Fijian economy which has been misinterpreted by academics and politicians.

“We can go tomorrow and inject liquidity of $200m to make it $500m, we can inject that up to $780m or increase the level of liquidity in the banking system, but we think this is not the right way and the right decision as of right now is $300m -the most appropriate level of liquidity that is consistent with our monetary value policies stance,” he said.

More details on this story in today’s edition of The Fiji Times.

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