SAMOA REPORTS TOURISM UP, REMTTANCES DOWN

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Central Bank issues economic report

APIA, Samoa (Samoa Observer, Nov. 6, 2010) – Exports and remittances fell in September, the Central Bank of Samoa (CBS) reported yesterday.

In a statement, CBS reported that September saw the usual fluctuations in the various key macro-economic indicators.

Tourism arrivals and earnings rebounded in light of the Teuila festivities and the first anniversary of the September 2009 tsunami while exports and remittances fell.

At the same time, the annual rate of inflation started to pick up, reaching 0.7 percent (from 0.9 percent in August), reflecting mainly gains in import prices.

With a large inflow of foreign funds into the economy, the balance of payments recorded a monthly overall surplus in September 2010, pushing up our foreign exchange reserves to a total of 464 million tala [US$195.9 million].

This is equivalent to just over 8 months of import cover.

Commercial banks’ interest rates fell further in September in support of ongoing efforts to stimulate demand in the economy.

Liquidity in the financial system continued to reach historically high levels with the banks pointing to market interest rates declining further in the months ahead.

Consequently, at its Meeting on 29 October 2010, the Board of the Central Bank of Samoa reaffirmed the continuation of the eased stance of monetary policy in the foreseeable future.

The main objective continues to be in support of the country’s ongoing efforts to recover from the adverse effects of the global recession as well as the September 2009 Tsunami.

 

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