RemittancesGateway.org

Fiji: Drop in remittances

Thursday, 27 August 2009 08:35

Source: Fiji Times
By: ASHWINI PRASAD

Reserve Bank Governor Sada Reddy in his office yesterday.

THE Governor of the Reserve Bank has expressed concern about remittances which currently stand at $150million.

Sada Reddy said before it used to be about $350 to 400 million. He said currently it stands at $150m which "is a major concern for us".

He said recently it started to pick up and hopes that it improves.

"We do not have major control as a large part of that is due to what is happening," Mr Reddy said.

He said many Fiji residents working overseas had lost their jobs as a result of the global crisis and this had seen a decline in remittance.

The RBF had earlier said around $723million enters the country through alternate means which don't include formal channels such as banks.

Mr Reddy had said while the RBF was happy that such funds were flowing in, it was still trying to determine how exactly it was occurring.

He said the $723m in unaccounted inflow was a significant help in addressing the current account deficit.

Around $482m of that deficit, he said, was financed through the capital and financial account.