Is currency crunch time coming?

In 2008 the current account deficit blew out from $1.7 billion to $2.1 billion.  The situation recovered only after we’d all been forced to swallow the harsh medicine of devaluation in 2009.  Now the current account deficit has blown out to over $3.1 billion.  In 2013 we exported a miserable 113,000 tonnes of sugar, worth a miserable $142 million.  In 2006 we exported 250,000 tonnes which was worth 215 pre-devaluation dollars, which were worth 20% more.  Meanwhile Bainimarama is pumping out borrowed dollars to boost spending so that we can all think we’re doing well under his strong handed government.  If he succeeds in pumping up everybody’s spending he may well succeed in moving forward a currency crunch like we had in 2009.  And as happened in 2009, the poor will be crushed when the cost of basics – kerosene, vegetable oil and flour – go up.

One Response to “Is currency crunch time coming?”

  1. Rai ki liu Says:

    Each individual should now rethink and vote for the best leader (PM) to lead Fiji in coming years. We all need to think about the future of our children, the effects of pay cuts, devaluations in dollar value, the rise in inflation costs and high cost of living, the fluctuations in sugar price, etc, that they will encounter in the near future. Fiji Sugar is basically surviving on preferential sugar price and borrowed money. Soon, we will have to compete with other sugar producing countries with world sugar market price. To compete well and survive, cane production will need to increase to 4Million tonnes; equivalent to crop achieved last 20 years ago. A lot will need to be done in the field to improve cane yield to around 60-80tonnes per hectares, etc. Its simple, increase raw material, then results will follow through. Why are we focusing only on 2 Million crop for the four mills for a season? This is ridiculous.
    We look at the current price of milk in the market today.It’s more than double now, costing @ almost $8dollars than $4dollars last 5-10 years ago. Cost of chicken is also double. The poor people are really suffering and the rich are getting richer and feeling happy, etc. Cost of houses are now almost equivalent to cost of houses from overseas, in millions, etc. USP graduates are still looking for decent jobs, etc, etc. Even graduates are now working at similar level and salaries with those with diploma or certificate, etc.
    We need to pray for the future of Fiji, our children and choose the best person to lead us after the coming election.

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