Central Bank resources to ensure economic stability
April 17, 2019 6:42 am
The Reserve Bank of Fiji is armored to ensure economic stability.
RBF Governor Ariff Ali says currently in their arsenal, they have more than a billion dollars in foreign reserves and no issues of liquidity in the market place.
Speaking at the 2019 Business Summit, Ali says the RBF is tried and tested when it comes to its economic policies aimed at safeguarding the momentous economic growth which is heading into its tenth year.
“We are the first line of defense against economic instability, the second thing is we try and manage and smooth the major driving force of the economy which is the business cycle and how we do that by trying to influence it through credit. So in times of recession, what the central bank does, it adopts an expansionary monetary policy, it lowers interest rates in the economy or increases liquidity so that people could borrow and revive the economy or borrow more to invest.”
Meanwhile, Ali says liquidity currently stands at around $337 million which is more than what the banks need to operate.