THE country's liquidity level has increased from $470 million in the first few months of this year to $600m as of June 12, says Reserve Bank of Fiji governor Barry Whiteside.
Liquidity is a degree to which an asset or security can be bought or sold in the market without affecting the asset's price and is characterised by a high level of trading activity.
"Liquidity in the first few months falls at around $470million and it is now $600m. It is really the function of the strengths of our reserves," Mr Whiteside said.
The country's current reserve is about $1.9 billion and according to Mr Whiteside it was the strongest that it had ever been.
The reserves, he said had been growing and is secured to retain 4.8 months of imports.
"Our economy is very healthy and is moving along at a steady level.
"You are aware that past two years, growth was in excess of 4 per cent."
This year, they were forecast 4.3 per cent and the central bank is confident they will hit that target.
"Investment is very strong and also consumption is very strong at this time.
"We are very comfortable this time with our reserve levels and inflations."
At the same time, inflation is very low as well below 1 per cent as of last month.
"We will try to keep encouraging the economy through accommodative monetary policy."
Mr Whiteside said they were looking at investment around 25 per cent of the GDP this year.
"We hit that target last year and the year before that which indicate strong investment at this time."
He said much of this investment was from the private sector which contributed strongly in the economy and Government's continued invest in infrastructure.