The Reserve Bank of Fiji has denied suggestions that a devaluation of the dollar is imminent.
The associate professor of International and Development Economics at the Australian National University, Satish Chand, told a seminar at the USP this week that the Fiji dollar was overvalued by as much as 12% and the only solution was devaluation.
But the governor of the Reserve Bank, Savenaca Narube, says there is no need to devalue the Fiji dollar because policy measures have managed to stabilize foreign reserves.
Mr Narube says growth in imports has slowed from 20% a year to 5% and is expected to drop still further.
He says there has been no evidence of capital flight as was the case after the 1987 coups.
Mr Narube says the firm stance of the interim administration to stabilize government finances by fixing the budget deficit to 2% of GDP supports the Reserve Bank's monetary policy.
