FJD - Fijian Dollar

Overview of the Fijian Dollar (FJD)

The history of the formation and development of the Fijian Dollar (FJD)

• Origin of decimalization: When Fiji adopted the decimal currency system (converting the currency system to units with powers of 10), they followed the model of South Africa, Australia, and New Zealand. Instead of using the pound unit, Fiji used a smaller unit, the half pound, for calculations. The use of the name dollar stems from the fact that the value of the new currency unit is more closely tied to the US dollar than the British pound.

• Second Fiji Dollar (1969 to present): The Fijian dollar was reintroduced into circulation on January 15, 1969, replacing the Fijian pound at a rate of 1 pound = 2 new Fijian dollars. Although Fiji became a republic in 1987, the image of Queen Elizabeth II (the Queen of the United Kingdom) continued to appear on Fiji's banknotes and coins until 2013. Later, images of the distinctive flora and fauna of Fiji replaced her image.

The Fijian Dollar (FJD) Denominations

The Fijian dollar is issued in various denominations, including banknotes and coins. Below is a list of the denominations of the FJD:

FJD banknotes

• 5 FJD (green)

• 10 FJD (purple)

• 20 FJD (light blue)

• 50 FJD (red)

• 100 FJD (yellow)

FJD banknotes are printed on modern polymer material, which enhances durability and effectively prevents counterfeiting.  

FJD coins

• 5 cent

• 10 cent

• 50 cent

• 1FJD

• 2 FJD

The 5, 10, 20, and 50 cent coins are made from triple-layer nickel-plated steel and feature images of animals characteristic of Fiji. The 1 and 2 FJD coins are made of brass plated with three layers of nickel.

The exchange rate history of the Fijian Dollar (FJD)

The FJD was officially introduced as the national currency of Fiji in 1969, replacing the Fijian pound at a rate of 1 pound to 2 dollars. Since then, the exchange rate of the FJD has seen fluctuations in response to various economic factors, including inflation rates, trade balances, and foreign exchange reserves.

In the early years of the FJD, the exchange rate was relatively stable as Fiji relied heavily on exports of sugar and tourism to generate revenue. However, the global financial crisis of 2008 had a significant impact on the FJD exchange rate, causing depreciation against major currencies such as the US dollar and Australian dollar. In response, the Reserve Bank of Fiji implemented measures to stabilize the exchange rate and restore confidence in the economy.

The current exchange rate of the Fijian Dollar (FJD)

The current exchange rate of the Fijian Dollar against the US Dollar is approximately 1 FJD = 0.452 USD. This exchange rate experiences slight fluctuations depending on the daily changes in the financial market.  

The exchange rate of the Fijian Dollar depends heavily on economic conditions, interest rates, monetary policy, etc. Regularly monitoring exchange rates helps you stay updated and make accurate currency trading decisions.Regularly monitoring exchange rates helps you stay updated and make accurate currency trading decisions.

Factors affecting the value of the Fijian Dollar

Below are some factors that significantly affect the value of the Fijian Dollar: 

• The economic situation of Fiji: Fiji's economy mainly depends on tourism, agriculture, and resource extraction. In which the tourism sector contributes significantly to the GDP of this country. Therefore, any fluctuations in the tourism industry will affect the value of the FJD.

• International trade: The trade relationship between Fiji and other countries, especially Australia, the United States, New Zealand, and China, significantly affects the value of the FJD. If Fiji's export items, such as tuna, sugar, and textiles have high value and demand in the international market, then the value of the FJD will be high.

• Foreign exchange reserves of the Central Bank: The Reserve Bank of Fiji manages the country's monetary policy and foreign exchange reserves. If the foreign exchange reserves are strong, the bank has the ability to intervene in the foreign exchange market to maintain the value of the FJD and vice versa.

• Monetary policy and interest rates: The bank's decision to set high interest rates attracts foreign investors, increasing demand for the FJD, thereby raising its value.

• Weather and natural disasters in Fiji: This is a country located in an area prone to natural disasters such as tropical storms, floods, and droughts. Especially in the agriculture and tourism sectors, if a natural disaster occurs, it severely impacts Fiji's economy, leading to the depreciation of the FJD currency.

The value of the Fijian dollar is influenced by many economic and environmental factors specific to Fiji. Short-term and long-term fluctuations affect the exchange rate of the FJD in the international market.