Prasad slams MP's suggestion for dollar reevaluation

July 11, 2024 6:54 am

Independent MP Sachida Nand, Finance Minister Professor Biman Prasad

Finance Minister Professor Biman Prasad has criticized Independent MP Sachida Nand for proposing the reevaluation of the Fijian dollar.

While making his contribution, Nand highlighted that Fiji has an import-based economy and is known as the hub of the region.

He noted that some neighbouring countries have much stronger currencies than Fiji and claimed that over the last two decades, the Fijian dollar has devalued by almost 60 percent, leading to a significant increase in the cost of imports and a further burden on the people.

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Nand then suggested a reevaluation of the Fijian dollar by a nominal rate of 20 percent, claiming that it would increase Fiji’s purchasing power and reduce import costs.

Finance Minister Professor Biman Prasad

The Finance Minister labelled the suggestion as “silly” and emphasized that such proposals should not be made without a proper understanding of their impact.

“Already our dollar has appreciated against some of our trading partners, and it would be silly to suggest any kind of reevaluation of the dollar. Also, when we had the devaluation in 2009, there was a major increase in prices, setting a trend of activities for years for us to deal with.”

Prasad highlighted that these are highly sensitive issues that could spark unnecessary and damaging discussions, potentially harming the economy.

He urged the Independent MP to refrain from discussing matters he has very little knowledge about.