Introduction
Money is a universal term that most people in the world can easily identify with. Without it, every day living and life in general becomes difficult. Managing money is therefore important. If money is mismanaged or not managed at all, the social, political and economic consequences can be catastrophic.
The Reserve Bank of Fiji (RBF), like all other central banks, is tasked with managing the overall supply of money in the economy. This process is known as monetary policy.
The decisions that the RBF makes in formulating monetary policy are predominantly aimed at improving the overall performance of the economy via the achievement of its objectives. The formulation of monetary policy in Fiji has undergone significant changes over the years. These changes have been necessary to ensure that the domestic economy is able to respond well to evolving changes both in the global and local economy.