BALANCE OF PAYMENTS - March 2016

FBoS Release No: 58, 2016

23rd September 2016


Fiji’s Balance of Payments (BOP) Statistics shows the value of Fiji’s transactions with the rest of the world in goods, services, primary income, secondary income and capital accounts. It also shows changes in Fiji’s financial claims on (assets) and (liabilities) to the rest of the world. The information used in this release is from the International Investment Survey and Administrative sources.

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

Key Facts

  • The Current and Capital account balance stood at a surplus of $222.9 million;
  • Financial account balance stood at a surplus of $92.3 million.

 

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  • The balance on current and capital account resulted in a surplus of $222.9 million in the March quarter of 2016 due to a decrease in import of goods, decrease in import of transportation services, decrease in investment income paid and increase in other current transfers.
  • The balance on financial account resulted in a surplus of $92.3 million in the March quarter of 2016 due to an increase in currency and deposits and decrease in investment transactions of foreign owned entities.

CURRENT ACCOUNT

Records the value of Fiji’s transactions with the rest of the world in goods, services, primary income and secondary income. The current account balance is the sum of all current account credits less all current account debits. When the sum of debits is greater than the sum of credits we have a current account deficit.

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  • The current account balance showed a net inflow of $221.4 million for the March quarter of 2016.
  • The net inflow current account balance rose by 1,129.8 percent ($242.9 million) when compared to the December quarter of 2015.
  • The net inflow current account balance rose by 318.8 percent ($322.6 million) when compared to the March quarter of 2015.

 

 

 

 

 

 

  • The balance on goods and services was a surplus of $110.1 million in the March quarter of 2016. This represents a rise by 172.9 percent ($261.1 million) when compared to the March quarter of 2015. Goods decreased by $282.3 million mainly due to the decrease in the import of food. Import of services decreased by $86.6 million mainly due to a decrease in the transportation services provided. These contributed to the improved goods and services balances.
  • The balance on primary income was a deficit of $27.5 million in the March quarter of 2016. This represents a fall by 58.3 percent ($38.4 million) when compared to the March quarter of 2015 as a result of a decrease in investment income paid abroad.
  • The balance on secondary income was a surplus of $138.8 million in the March quarter of 2016. This represents a rise by 20.0 percent ($23.1 million) when compared to the March quarter of 2015 due to an increase in other current transfers.

 

 

CAPITAL ACCOUNT

Has two components – capital transfers and the acquisition or disposal of non-produced, non-financial assets. Capital transfers involve the transfer of ownership of fixed assets, or the transfer of funds linked to them, without any counterpart transaction.

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  • The capital account balance showed a net inflow of $1.5 million for the March quarter of 2016.
  • The net inflow capital account balance represents a fall by 37.5 percent ($0.9 million) when compared to the December quarter of 2015.
  • The net inflow capital account balance rose by 25.0 percent ($0.3 million) when compared to the March quarter of 2015.

 

 

 

 

 

 

FINANCIAL ACCOUNT

Records financial transactions involving Fiji claims on assets and liabilities to non-residents. The financial account is classified into assets and liabilities, which are broken down by type of investment (direct, portfolio, other investment and reserve assets) and instrument of investment.

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  • The financial account balance showed a net lending of $92.3 million which consisted of net outflows of $46.7 million in equity and inflows of $139.0 million in debts for the March quarter of 2016.
  • The financial account net lending rose by 206.5 percent ($179.0 million) when compared to the December quarter of 2015.
  • The financial account net lending rose by 146.5 percent ($291.0 million) when compared to the March quarter of 2015.

 

 

 

 

 

 

 

  • Direct investment showed a net outflow of $52.0 million in the March quarter of 2016. This represents a fall by 75.6 percent ($161.0 million) when compared to the March quarter of 2015.
  • Portfolio investment showed a net inflow of $30.9 million in the March quarter of 2016. This represents a rise by 95.6 percent ($15.1 million) when compared to the March quarter of 2015.
  • Other investment showed a net inflow of $48.3 million in the March quarter of 2016. This represents a fall by 25.0 percent ($16.1 million) when compared to the March quarter of 2015.
  • Reserve assets showed a net inflow of $65.1 million in the March quarter of 2016. This represents a rise by 198.8 percent ($131.0 million) when compared to the March quarter of 2015.

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Caution:

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 reported 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. Radhika Kumar on email or telephone 331 5822 (ext. 386 246) or direct line 323 0846.

Balance of Payments Statistics for the June Quarter of 2016 will be released as soon as the disaggregated data becomes available.