Foreign reserves increased

Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum.

ECONOMY Minister Aiyaz Sayed-Khaiyum said despite the shutdown of the tourism sector, the economy’s largest foreign exchange earnings, foreign reserves increased supported by personal remittances and government external debt.

He told members of the Fiji Institute of Accountants at their preliminary budget discussions that foreign reserves reached a record high level of $3.2 billion in 2021 year end while it stood at $3b in May, sufficient enough to cover eight months of retained imports.

“Overall, foreign reserves remain comfortable and the outlook is stable,” Mr Ali said.

“We have managed to come out of the COVID-19 crisis and it is time to rebuild the economy.

“The recovery of tourism is critical for overall recovery and it is in everyone’s interest to protect the fragile recovery and build upon this momentum.”

The AG highlighted that while there was a continuous need for confidence building, downside risks should also be taken into massive consideration.

He informed accountants that these risks include the Russian Ukraine crisis, global inflationary pressures, natural disasters and another round of the pandemic.

The minister concluded that the private sector would have to take the lead role in the post COVID-19 recovery.

“Post COVID-19 recovery has to be private sector-led.

“Government will focus on ensuring macro-economic stability and improving competitiveness and productivity.

“Regulatory reforms are needed in business processes and policy consistency.”