Global Crisis to have limited impact on “financial sector”
Bloggers this is from Savenaca Banuve, Fiji’s Governor of the RBF. Who is he trying to fool? With the big economies falling into a recession, how can small economies like Fiji, have limited effects? SV asks the Governor to define what is ‘limited effects?’ Australia is already predicting that if the downturn continues, then it stands to lose over 200,000 jobs by the end of next year. Fiji’s banking institution maybe lending to domestic entities, but some of these big local entities have their parent companies offshore. Furthermore, with remittance being one of, if not the largest foreign exchange flowing into Fiji, it is going to drop drastically when those sending monies have lost their jobs overseas and affect Fiji. The fact of the matter is Fiji being ‘insignificant’ in monetary terms and highly dependent on foreign investments, preferential treatment and grants, when the big economies wind down, Fiji could be snuffed out and with an illegal regime which is not recognised, despite the Gate’s judgement, getting international assistance will be much more harder to get. SV challenges Governor Naurbe to disclose what the true state of Fiji’s economic affairs is because we are confident that it ain’t healthy!
Friday, October 31, 2008
Current Global crisis will have Limited impact on Fiji’s financial sector Taken from / By: Google
Reserve Bank of Fiji governor Savenaca Narube says while the global crisis will affect the real economy, its impact on Fiji’s Banking system is limited.
Narube says Fiji’s banking system remains strong, resilient and adequately capitalised.
He added that this is because liquidity is high and the financial institutions do not have any direct exposure to the international financial market given that bank lending is confined to domestic Entities.
On the Bank’s objectives, Narube explained that while domestic inflation has reached a 20- year high of 9.8 percent in September, it is expected to fall in the coming months in line with the trend in crude oil and commodity prices.
On the other hand, the widening trade deficit continues to weigh negatively on the foreign reserves levels.
Given the Bank’s commitment to its objectives and the risks posed by the current global financial crisis, the Board has decided to keep the current monetary policy unchanged.
Fiji Broadcasting Corporation LTD