[Photo: FILE]
Money sent home by overseas workers is set to reach a record $1.6 billion in Fiji this year.
Reserve Bank Governor Ariff Ali explained that remittance inflows grew by 32 per cent in the first eight months of 2026.
Ali says remittances have more than doubled from just under $500 million in 2015 to more than $1.3 billion last year.
They are also expected to account for about 10 percent of Fiji’s gross domestic product this year.
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Australia remains Fiji’s largest source of remittances, contributing almost half of total inflows.
The United States, New Zealand, the United Kingdom and Canada are other major sources.
“These flows help finance our trade deficit, support our foreign reserve and sustain demand. They are part of the foundation of Pacific macroeconomic stability. Therefore, it is in our interest to ensure that sending and receiving money across borders is affordable, secure and accessible to all.”
Ali said these funds help families pay school fees, buy food and meet essential expenses. They also support Fiji’s foreign reserves, finance the trade deficit and sustain domestic demand.
He said remittances became Fiji’s largest source of foreign exchange during the COVID-19 pandemic, highlighting their importance when other economic activities were disrupted.
Digital financial services are also changing how money reaches families.
Ali says mobile network operators have increased their share of Fiji’s remittance market, rising from almost one-third of total inflows in 2023 to more than half last year.
The integration of mobile money providers into Fiji’s national payment system has made transfers between bank accounts and digital wallets easier.
However, Ali says the region must do more to ensure remittances are affordable, secure and accessible, particularly for families in remote communities.
He says the focus must extend beyond sending money to helping recipients access savings, credit, insurance and other financial services.
The Reserve Bank Governor made the remarks at the Pacific regional conference on cross-border remittances, which brings together regulators, financial institutions, mobile money providers and development partners to address barriers to cross-border payments.