BALANCE OF PAYMENTS - September 2015

FBoS Release No: 97, 2015

31st December 2015


All values in this release are in Fiji Dollars (FJD).

Provisional Balance of Payments data for the September quarter of 2015 show the following:

  • The Current and Capital account surplus of $39.7 million;
  • Financial account deficit of $32.9 million.

CURRENT ACCOUNT – main components include Fiji’s trade balance, investment income and current transfers.

Table 1

bopSep15a

The current account balance for the September quarter of 2015 showed a net inflow of $38.7 million. This was an improvement of $163.1 million when compared to the $124.4 million net outflow recorded a year earlier. The following flows were recorded:

  • Net goods deficit decreased by $33.9 million (from $512.7 million to $478.8 million) largely due to a decrease in the imports of machinery and transport equipment;
  • Net services surplus increased by $115.8 million (from $397.5 million to $513.3 million) largely due to an increase in earnings from tourism;
  • Net primary income deficit increased by $9.9 million (from $122.9 million to $132.8 million) due to an increase in investment income paid abroad and
  • Net secondary income surplus increased by $23.3 million (from $113.7 million to $137.0 million) due to an increase in personal transfers.

The following graph shows the current account and its major aggregates.

bopSep15b

CAPITAL ACCOUNT – tracks flow of aid and grants either in cash or kind for capital development and equipment purchase.

Table 2

bopSep15c

The capital account recorded a net inflow of $1.0 million in the September quarter of 2015.

FINANCIAL ACCOUNT – describes the change in ownership of international assets and liabilities.

Table 3

bopSep15d

The balance on financial account in the September quarter of 2015 recorded a net borrowing of $32.9 million which consisted of net outflows of $141.6 million in equity and an inflow of $108.7 million in debts.

Direct investment recorded a net outflow of $171.2 million, an increase of $54.6 million from the net outflow of $116.6 million a year earlier where;

  • Direct investment assets recorded an outflow of $0.3 million. This was due to a decrease in investment abroad;
  • Direct investment liabilities recorded an inflow of $170.9 million. This was due to an increase in investment from abroad.

Portfolio investment recorded a net inflow of $36.8 million, an increase of $34.0 million from the net inflow of $2.8 million a year earlier where;

  • Portfolio investment assets recorded an inflow of $36.8 million;
  • Portfolio investment liabilities recorded no transaction.

Other investment recorded a net inflow of $66.7 million, a decrease of $260.4 million from the net outflow of $193.7 million a year earlier. This was the net effect of the following:

  • Other investment assets recorded a net inflow of $383.1 million. This was due to the inflows of $370.7 million in currency and deposits, $9.9 million in trade credit and advances, $1.8 million in loans and $0.7 million in other accounts receivable.
  • Other investment liabilities recorded a net inflow of $316.4 million. This was due to the inflow of $279.7 million in currency and deposits, $55.0 million in loans and $1.3 million in other accounts receivable. However, there were outflows of $19.6 million in trade credit and advances.

Reserve assets recorded a net inflow of $34.8 million, a decrease of $27.8 million from the net inflow of $62.6 million a year earlier.

The following graph shows the financial account and its major aggregates.

bopSep15e

The International Monetary Fund’s Balance of Payment and International Investment position Manual Sixth Edition (BPM6) has been used in compiling the detailed Balance of Payments Statistics from 2005. Apart from the annual data, tables attached also contain the quarterly aggregates.

Click here for related tables

References can also be made to Fiji Bureau of Statistics’ Quarterly Releases on International Investment Position (IIP), International Trade in Services (ITS) and the monthly Releases on International Merchandise Trade Statistics (IMTS). However, caution should be exercised when comparing imports reported in the IMTS Release as they are on a CIF (cost, insurance and freight) basis, whereas in Balance of Payments adjustments are made to the imports to have it reported on FOB (free on board) basis.

For further enquiries please contact Ms. Torika Ketenilagi on email or telephone 331 5822 (ext. 386 246) or direct line 323 0846.

The Balance of Payments Statistics for December Quarter and Annual 2015 will be released as soon as the disaggregated data becomes available.