Fiji’s military regime has devalued the country’s dollar by 20 percent in a bid to boost the economy and attract tourists.
The move came hours after Commodore Frank Bainimarama appealed to New Zealanders to ignore a warning from Foreign Minister Murray McCully to think carefully before visiting Fiji.
Passengers flying to Fiji this morning were among the first to benefit from the military’s money move.
New Zealand banks were sent a statement from the new military governor, Sada Reddy, appointed after the former governor was removed yesterday.
“The Fijians have announced that this devaluation is really to cushion the effects of the severe financial crisis on the Fijian economy. Ultimately, it will make your Fijian trip a whole lot cheaper – but given the uncertainty and the political unrest I’m not sure that that will be enough,” says BNZ currency strategist Danica Hampton.
A concern that appears to be shared by Cdre Bainimarama; in a radio interview he said Mr McCully has an agenda against Fiji.
“If the people of New Zealand are listening there is no cause of alarm, everything continues normally so people should not listen to McCully,” he said.
Travellers today say they are not concerned for their safety there.
“It has always been a political coup if you like – and they can do what they want in Suva. They leave Nadi well alone because that is where the tourists are and they would be mad to change that,” says tourist Matt Fenton.
The Fijian government says it may be another few months before foreign journalists can re-enter Fiji and Fiji TV was again censored last night.
However, an independent blog site remains – reporting a government clampdown on internet cafes and an internet ban for all civil servants.
Attention will now turn to the economy, while the devaluation will help exporters, even Fiji’s reserve bank is warning the cost of living will rise with a sudden jump in inflation.
3 News