斐济共和国：若干问题

REPUBLIC OF FIJI SELECTED ISSUES This paper onthe Republic ofFiji was prepared by a staff team of the InternationalMonetary Fund as background documentation for the periodic consultation with themember country. It is based on the information available at the time it was completed onMay14, 2026. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.org International Monetary FundWashington, D.C. REPUBLIC OFFIJI SELECTED ISSUES ApprovedByAsia and PacificDepartment Prepared BySandra Milena Benitez Celis, Matteo Ghilardi,Shivneel Kirpal, andSonam Tobgay CONTENTS MONETARY OPERATIONS AND LIQUIDITY DYNAMICS IN FIJI___________________2 A. Introduction________________________________________________________________________2B. Fiji’s Monetary Policy Framework, Instruments, and Operational Implementation___2C. Liquidity Conditions and Structural Drivers_________________________________________5D. Implications for Monetary Policy Transmission and Operational Normalization____6 PROTENTIAL OUTPUT AND HIGH-INCOME CONVERGENCE IN FIJI______________8 A. Introduction________________________________________________________________________8B. Estimating Potential Output Growth in Fiji: A Production-Function Approach_______8C. Framework and Growth Decomposition____________________________________________9D. Factor Input Projections____________________________________________________________9E. Is High-Income Convergence Achievable by 2050?_______________________________13 References___________________________________________________________________________15 MONETARY OPERATIONS AND LIQUIDITY DYNAMICSIN FIJI1 Thispaperexamines the implementation of monetary policy in Fiji, with a focus on liquidity dynamicsand their implications for monetary transmission. It documents how persistent surplus liquidity—shaped by foreign exchange inflows and fiscal cash-management practices—has influenced thetransmissionof the policy rate and short-term money-market conditions.It alsoassesses how liquidityconditions have interacted with the existing operational framework and discusses options to strengthenmonetary implementation andtransmission. A.Introduction 1.Thispaperprovides an analysis of monetary policy implementation in Fiji, with aparticular focus on the role of liquidity dynamics under the exchange-rate peg.In Fiji’s small,open, and import-dependent economy, monetary policy operates within a constrained environmentin which external stability, reserve adequacy, and domestic liquidity conditions are closelyintertwined. As a result, the effectiveness of monetary policy depends not only on the formalframework and stated policy instruments, but critically on how liquidity is generated and managedthrough the financial system in practice. 2.Against this background, this paperdocuments how Fiji’s institutional framework andoperational practices have interacted with external inflows and fiscal cash flows to produce aprolonged period of structural excess liquidity.It first outlines the monetary policy frameworkand instruments, emphasizing how the formal corridor-based framework has operated de facto as afloor system. It then analyzes recent liquidity developments and their structural drivers, beforeassessing theimplications for monetary transmission under the exchange-rate peg. Thepaperconcludes by summarizing operational priorities identified by recent IMF technical assistance aimedat strengthening monetarypolicyimplementation within the existing policy framework. B.Fiji’sMonetary Policy Framework, Instruments, and OperationalImplementation 3.Fiji’s monetary policy framework is anchored in a dual mandate that places externalstability andprice stabilityat the center of policy implementation.The Reserve Bank of Fijioperates under the Reserve Bank of Fiji Act of 1983, as revised in 2010, which assigns itresponsibility for maintaining price stability and ensuring an adequate level of foreign exchangereserves, while supporting sustainable economic growth and a sound financial system. In practice,these objectives are closely interlinked in a small, open, and import-dependent economy whereinflation dynamics are heavily influenced by external price developments and where confidence in the domestic currency is closely tied to reserve adequacy. 4.The current framework reflects a gradual transition from direct administrative controlstoward market-based monetary instruments, shaped by financial deepening and institutionaldevelopment over time.During the 1970s and 1980s, when domestic financial markets wereshallow and credit allocation mechanisms limited, the RBF relied extensively on direct tools such asinterest-rate ceilings, sectoral credit controls, and foreign-exchange rationing. As financialliberalization progressed from the 1990s onward, these controls were