FIB President saw high liquidity in banking system good for Fiji

Reserve Bank of Fiji

 

The President of the Fiji Institute of Bankers and ANZ Bank CEO Fiji and Pacific Islands sees the high liquidity in Fiji’s banking system as a good thing for the country in the long-term.

It was reported on the Reserve Bank of Fiji’s Economic Review for June 2017 that the central bank recorded an increase in liquidity by 27.0 percent ($152.6m) to $717.6 million in May 2017.

This was led by the increase in foreign reserves ($161.3m) coupled with a decrease in statutory reserve deposits (-$11.7m) and by June the liquidity remains high at $735.8 million.

Mr Saud Minam said that surplus liquidity means Financial Institutions will be able to meet loan demands.

He said the increase in foreign reserves is good for the country as it increases ability to meet payment of imports for a longer period of time.

He added that there is a good momentum for economic growth and this will be the eighth consecutive year where Fiji’s GDP has shown positive growth.

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