Remittances are Fiji’s second-largest foreign reserve earner however this is set to change.
Reserve Bank of Fiji Governor Arif Ali says with the tourism industry devasted by the impact of COVID-19, remittances could climb up to the top foreign exchange earner.
Remittances contribute to economic growth, through their positive impact on consumption, savings, and investment.
Ali says personal remittances increased by 5.9 percent in the last three months despite the global economic downturn due to the impacts of COVID-19.
As of yesterday, Fiji’s foreign reserves stand at 2.2 billion dollars and Ali revealed that this is sufficient to cover imports for the next 12 to 24 months.
He adds remittances could be Fiji’s largest foreign exchange earner if borders remain closed.
Personal remittances are money sent from family and friends working abroad.
Personal remittances have been the second largest foreign exchange earner for Fiji since 2004.