Sivaniolo Lumelume 
Former Reserve Bank Governor and Unity Fiji Party Leader Savenaca Narube and Deputy Prime Minister and Minister for Finance Professor Biman Prasad
Former Reserve Bank Governor and Unity Fiji Party Leader, Savenaca Narube, reiterates his call for the Fijian government to consider exchange rate management as part of a broader policy package to address the rising cost of living.
He argues that Fiji’s inflation is primarily driven by the increasing cost of imports, such as fuel, which is influenced by the weakening Fijian dollar.
The former Reserve Bank Governor states that a weaker exchange rate results in higher import costs, increasing the financial burden on Fijians and pushing more people into poverty.
“So when we import, what we pay in Fiji depends on the exchange rate for those imports. So if the exchange rate, of course, of the Fiji dollar weakens, and we have been weakening, the cost that we pay for our imports is rising, simply because our exchange rate is weaker.”
Narube suggests that the government should focus on stabilizing the exchange rate to prevent further depreciation, which would help control import prices.
In response, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, dismisses suggestions of any government plans to revalue the Fijian dollar, rejecting such proposals.
“We don’t have any plans. Absolutely no plans. I can’t understand people who are suggesting that. Obviously, I reject that outright.”
Narube stresses that exchange rate management should be part of a comprehensive policy approach rather than a standalone solution.
