RESERVE Bank of Fiji governor Barry Whiteside says that for the first time since 2000, the bank will relax certain capital account transactions by delegating these payments up to certain limits to authorised dealers.
In a press statement Mr Whiteside said the changes had been made in light of the outlook on foreign reserves which are around $1.6 billion.
The statement followed Prime Minister and Finance Minister Commodore Voreqe Bainimarama's 2013 National Budget address in which he announced the Reserve Bank would further relax exchange controls effective from January 1 next year.
Mr Whiteside said these measures would signal confidence to the market and increase operational efficiency for businesses as they could now repatriate their profits, up to $0.5 million, without seeking approval from the RBF.
The central bank statement said over the years it had progressively relaxed exchange controls and at present most payments were delegated to commercial banks and foreign exchange dealers. The announced changes include further increases to the delegated limits of certain current payments and offshore investment by individuals.