UNIVERSITY of the South Pacific faculty of business and economics dean Professor Biman Prasad says the Reserve Bank of Fiji's tightening of exchange controls is in reaction to dwindling foreign reserves in the country.
Professor Prasad said the measure taken by the RBF was a correct one.
"The RBF has to closely monitor the impact of the recent turn of events on the whole economy and ensure that our financial system is stable and sustainable," said Professor Prasad.
In an unsigned statement, deputy Governor Sada Reddy said the move was in line with its core objectives of safeguarding Fiji's foreign reserves.
"Some of these changes include suspension of facilities while application for other facilities by customers will require the approval of the Reserve Bank," added Mr Reddy.
He said certain transactions would continue to be delegated but at lower limits.
Mr Reddy added that further clarification of these measures could be obtained from commercial banks, other authorised foreign exchange dealers and the RBF.
