15 Apr 2009

Reserve Bank devalues Fiji dollar by 20 percent

2:23 pm on 15 April 2009

The Fiji Reserve Bank has devalued the Fiji dollar by 20 percent.

The move follows reports of declining foreign currency reserves and comes amid measures to tighten financial controls.

But the Bank says the devaluation will bring the Fiji dollar in line with major trading partners, New Zealand and Australia.

In addition, the Bank has directed trading banks to set their interest rates no higher than four percent by the end of this year.

And it is calling on banks to set up specialised micro-finance service centres in all their branches by January next year.

The Reserve Bank says it will support this by setting up a micro-finance research and development unit.

These announcements came after a raft of changes imposed by the new interim government, including the replacement of the Reserve Bank governor.