Fiji Times Monday 04 September 2017 EXCESS liquidity in Fiji’s banking system continues to increase significantly, recorded by the Reserve Bank of Fiji at $756.1 million as of August 31.
In its Economic Review for the month of August, the central bank noted an increase of $740.4m in July, compared with the 2.5 per cent increase of $735.8m recorded earlier in June.
The increase, the RBF stated, was led by a rise in foreign reserves ($28.8m) but dampened by increases in statutory reserve deposits ($18.8m) and currency in circulation ($18.0m).
Liquidity, simply put, are excess funds that our commercial banks have at the end of each day that have not been lent out to borrowers.
These funds are deposited by commercial banks with the RBF and do not accumulate any interest. Read more…
