ANZ Fiji’s head of markets Sanjay Chandran has urged customers, especially exporters, to explore foreign exchange tools offered by the bank to help them navigate foreign exchange fluctuations, as the current US versus the world trade war continues to kick up the dust of uncertainties in foreign exchange markets.
“Our Suva-based Global Markets team, part of ANZ’s extensive network across 29 countries, provides economic research and foreign exchange products such as Forward Exchange Contracts. These tools can assist clients in managing exchange rate risk on their FX exposures,” Mr Chandran said in a statement issued this week by the bank.
His comments come at the heel of a visit here by ANZ’s foreign exchange analyst Felix Ryan, who met with the press as part of a wider agenda to meet with ANZ clients, hold seminars for customers and ANZ staff and speak at a session at the Reserve Bank of Fiji for their board members, staff and external stakeholders, sharing insights on global market trends and their local impacts.
Mr Ryan highlighted that recent US trade policy announcements have significantly impacted global markets, causing fluctuations between uncertainty and optimism on a daily basis.
“In the March 2025 quarter, the AUD fell nearly four per cent against the USD but has since recovered most of the loss,” he said at the press conference on Tuesday this week.
“Similarly, Fiji’s FJD/USD exchange rate dropped in Q1, mirroring the AUD/USD trend.”
He advised looking beyond daily volatility to predict the AUD/USD exchange rate over the next 18 months and forecasted the Australian dollar, currently at USD 0.63, to rise to USD 0.65 by early 2026 and reach USD 0.68 by the end of 2026, an eight per cent increase.
“A stronger AUD will boost the FJD/USD rate but weaken the FJD/AUD pair. However, the impact will be marginal due to Fiji’s diversified currency basket, providing a natural hedge against volatility,” Mr Ryan said.
“These developments are positive for Fiji. A stronger FJD against the USD can offset higher tariffs, while a weaker FJD against the AUD benefits Fiji’s tourism industry.”
The implications for importers are also significant.
According to Mr Chandran, for Fijian importers with USD or AUD payment requirements, a stronger Fiji dollar meant lower costs for imported goods.
“However, for exporters, the opposite is true. Payments received in USD or AUD will result in lower FJD receipts upon conversion, impacting revenue.”
ANZ, he said, stood ready to help customers pick their way through the uncertainties.
“At ANZ, we understand the challenges our customers face in a volatile foreign exchange environment,” Mr Chandran said.
“Our team is dedicated to providing the tools and insights necessary to manage these risks effectively and support the growth of Fijian businesses.”
Picture: ANZ
Note: This article was first published on the print version of the Fiji Times dated May 3, 2025
