Remittances supplanted tourism earning
October 14, 2021 6:15 am
Remittances have surpassed tourism earnings as Fiji’s key source of foreign exchange amid the COVID-19 pandemic.
This was highlighted by Minister for Economy, Aiyaz Sayed-Khaiyum in a virtual meeting with the International Monetary Fund Deputy Managing Director, Bo Li.
Sayed-Khaiyum says remittances have the potential for even stronger growth via existing digital channels such as mobile money wallets.
Discussion was centered around the macro-fiscal impacts of Coronavirus on Small Island Developing States with specific focus on the disproportionate effects of the pandemic on tourism dependent countries in the Pacific.
The Minister adds this has resulted in the lagged recovery projected for the region.
The virtual meeting also focuses on the ongoing decline of Correspondent Banking Relationships across the Pacific due to rising compliance costs, and the implications for cross-border trade, investment and foreign exchange.
Sayed-Khaiyum also highlighted the need to note the extreme vulnerability of SIDS to the effects of climate change, particularly the increased frequency and severity of tropical cyclones.