28 Jul 2006

No devaluation of local dollar - says Fiji's finance minister

7:50 am on 28 July 2006

Fiji's finance minister says there will be no devaluation of the local dollar.

Fijilive reports that Ratu Jone Kubuabola was commenting on a report by the Fiji Chamber of Commerce president, Taito Waradi, that all economic indicators were pointing to the real possibility of devaluation.

Ratu Jone says speculation about devaluation is unfortunate.

He says devaluation has never been intended and he does not expect the Reserve Bank to make such an announcement any time in the future.

Ratu Jone says speaking of devaluation has "a very negative and immediate impact on the economy" and it is worse when such comments are "baseless."

He says devaluation would not be a sensible idea because Fiji's economy is heavily reliant on raw materials that have to be imported.

The finance minister says devaluation suggestions do no good, especially to current and potential investors.

Ratu Jone says investors should rest assured that the Fiji dollar would continue to remain strong as the government is pursuing serious projects to boost the economy.