Foreign exchange inflows from the agricultural sector have dropped for the first half of the year.
According to Bank South Pacific Group CEO, Robin Fleming, there has not been quite as much inflow compared to the same period in 2016.
Fleming highlighted one of the major contributors to the agriculture inflows was coffee, which has been hit hard by the Coffee Berry Borer (CBB) pest.
This has reduced output of coffee sold.
Fleming said while inflows have dropped, demand for imports continues to rise.
“From our perspective we’ve seen reduced flows as much to do with agriculture as much as anything, and demands on imports are continuing,” he said.
Fleming added this was one of the issues raised to the Treasurer, Charles Abel.
He said Abel has had discussions with all commercial banks and import and export players in the industry, regarding the forex issue.
He said they have basically outlined to him an understanding of the market conditions and the current impact it has on the country.
Meantime, Abel recently outlined a 100 day economic stimulus plan which the Government hopes will inject revenue into the economy before the 2018 Budget is passed.
He said the Government was determined to undertake immediate interventions to address the trying economic conditions.
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