Sada Reddy, the governor of the Reserve Bank of Fiji, last Tuesday discussed the threat of a balance of payments crisis following a decline in exports during recent years.

Fiji came under severe pressure in recent years as foreign reserves dropped very rapidly to F$430m ($223m), close to one-and-a-half months'-worth of imports, in the first quarter of last year.

Although the global financial crisis did not directly affect Fiji's financial system and financial institutions, its second-round