3 Oct 2006

Fiji warned about possible devaluation

2:02 pm on 3 October 2006

The Fiji Chamber of Commerce has warned that the country faces a devaluation of its currency unless corrective measures are taken to address the deteriorating state of the economy.

The Fiji Sun reports that the warning comes as the country's foreign reserves have fallen to a level where they are enough to pay for only 2.6 months of imports, down from its peak of 9 months before the 1987 coups.

The Chamber president Taito Waradi, has blamed declining exports, increasing imports and investment that is driven largely by the public sector when it should be driven by the private sector.

Mr Waradi says before the 1987 coups the economy was largely driven by the private sector but 19 years later it is struggling.

He says out of the total investment of 17 percent of GDP now, only six percent comes from the private sector.