Fiji's foreign reserves has reached record F$1.0 billion.

Reserve Bank Governor Sada Reddy has revealed this, saying that the current level of foreign reserves now equates to around 3 to 4 months of imports (goods and non-factor services).

Reddy said this is an extraordinary achievement as 6 months ago, foreign reserves fell to a critical level of around 1 month of import cover.

He added the strong recovery in the foreign reserves is due to the measures put in place by the bank in mid-April 2009, which had an immediate impact.

The governor said this would now generate more confidence in the economy and financial system.

However, Reddy reiterated that given the risks to small open economies such as Fiji, it is important that we continue to put in measures to buffer the foreign reserve.

He said the RBF will now ensure that their benchmark will now be 5 months of import cover as, given the experience of the past, 3 months of import cover is inadequate for Fiji.

The Attorney General and Acting Minister for Finance Aiyaz Sayed-Khaiyum said government's target is to continue increasing our foreign reserves and reducing wastage.