I was reading fijitimes online today and came across Satish Chands's article called "Dollar faces drop in value". I then went on to have a look at the foreign exchange trend betweeen Fiji and 5 major world currencies - the US dollar, Australian dollar, the pound, Yen, and the Euro.
In doing so i noticed an unusual depreciation of the Fiji currency on April the 18th 2007 against all these major currencies - just happened to be on the same day as the EU meeting in Brussels where Fiji made its submission and subsequently followed by consultations and committments by both sides (click here for the outcome of this meeting and the various committments made).
I havent quite put my finger on what exactly caused this sudden depreciation but notice that the currency immidiately rises the next day.
Please drop me an email or comment if you have any clue on what's going on here.
The graphs below show the 90 day exchange rate history between the the Fiji Dollar (FJD)and each of the 5 major currencies mentioned above - from February to May 2007:
the above graphs were obtained from http://www.exchange-rates.org/In doing so i noticed an unusual depreciation of the Fiji currency on April the 18th 2007 against all these major currencies - just happened to be on the same day as the EU meeting in Brussels where Fiji made its submission and subsequently followed by consultations and committments by both sides (click here for the outcome of this meeting and the various committments made).
I havent quite put my finger on what exactly caused this sudden depreciation but notice that the currency immidiately rises the next day.
Please drop me an email or comment if you have any clue on what's going on here.
The graphs below show the 90 day exchange rate history between the the Fiji Dollar (FJD)and each of the 5 major currencies mentioned above - from February to May 2007:
3 comments:
If you have to spend more Fijian dollars to buy a unit of Australian dollar or Euro, it is depreciation rather than appreciation.
Hey thanks for the correction, really appreciate that. Vinaka
Not sure what happened there, but there are other interesting "milestones" approaching. Sometime in June, the IG will run out of the US dollars it held in Singapore after the previous Government floated a bond issue there last year. As for our foreign reserves, there really hasn't been any real change in the "slow leak" downward pressure on the Fiji dollar. Exports still suck and imports are still bouyant with nothing looking like it will change that in the foreseeable future. So our foreign reserves position will be very "tight" by the end of the year if that does continue.
Post a Comment