High Liquidity Symptom Of Economic Problems, Says Former RBF Governor

Fiji’s high liquidity level - over $2billion - is an un­healthy symptom reflect­ing poor economic growth, says former Reserve Bank of Fiji Governor Savenaca Narube.

He said the country must find ways to make that money work for the economy, because its ac­cumulation has only meant that this has not been the case.

“It’s not a healthy indicator at all. It’s reflecting the lack of economic activity.

Lack of in­vestments. And that’s a big con­cern,” he said.

“Where does this liquidity come from? It is coming from outside Fiji. What you call the foreign reserves. As the foreign reserves come in, they get con­verted into Fijian currency and they are there with the commer­cial banks.

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Story By: dionisia.tabureguci@fijisun.com.fj