A senior economist says Fiji's unstable foreign reserve situation has led to speculation about its dollar.
The Fiji Times reports that Fiji-born Dr Paresh Narayan, who now teaches at Australia's Griffith University, makes the comment in a paper on Fiji's declining foreign reserves.
Dr Narayan says poor economic performance combined with rising debt levels and declining private investment suggest ominous signs for Fiji's future.
He says the failure of Fiji's export-led growth strategies to boost exports forced Fiji to twice devalue its currency in the last two decades - by 33% after the 1987 military coups and by 20% in 1998 following the Asian financial crisis.
Dr Narayan says the two devaluations created further insecurity, accentuating capital flight and discouraging private investment.
