In the face of US tariffs and their impacts on global markets, a research analyst with ANZ Bank states the strengthening of the Australian dollar in the next months will be positive for Fiji.
Research Analyst Felix Ryan is in Suva this week to discuss tariffs and their impacts on global markets.
“In the March 2025 quarter, the AUD fell nearly 4% against the USD but has since recovered most of the loss. Similarly, Fiji’s FJD/USD exchange rate dropped in Q1, mirroring the AUD/USD trend,” Mr Ryan said.
He is forecasting 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 8% 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.”
He added 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.”
