RBF warning: firms need approval to hold foreign cash

Companies must obtain approval from the Reserve Bank of Fiji to hold foreign currency cash, Governor Ariff Ali has confirmed.

"Foreign currency cash can only be held upon approval by the RBF," Mr Ali told this masthead on Friday.

Under the Exchange Control Act, only authorised dealers such as commercial banks and licensed foreign exchange dealers are allowed to hold foreign currency.

However, local companies earning foreign income from exports may keep these funds in foreign currency accounts with commercial banks to pay for overseas expenses.

Commercial banks are authorised to approve the retention of export earnings up to $250,000 per company, while the RBF approves amounts above that threshold.

Mr Ali said there is no set time limit on how long companies may hold foreign currency, as they are generally required to sell it to an authorised dealer.

Penalties

Fines and other penalties may apply under the Exchange Control Act if a person or company is found to have breached the law when an offence is proven in a court of law.

The Governor said exchange controls help protect and manage Fiji's foreign exchange reserves.

"Having enough foreign reserves is especially important for a developing country like Fiji, as it allows the country to trade with the rest of the world," he said.

His comments come as Police continue investigations into the alleged aggravated robbery at Millers Wharf, Walu Bay, where a safe allegedly containing local and foreign currencies was stolen.

Police spokesperson Ana Naisoro confirmed investigations are ongoing to establish the identity of those involved.

One suspect was earlier released as Police work to gather concrete evidence.

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