Fijian Dollar

Evolution of the FJD Exchange Rate

The Fijian dollar (FJD) exchange rate has generally been stable over the years. Since its introduction in 1969, the FJD has primarily fluctuated within a narrow range against major currencies such as the US dollar, Australian dollar, and the Japanese yen. While it has experienced some minor fluctuations, the FJD has maintained a relatively stable exchange rate.

Variations in the FJD Exchange Rate

The variations in the FJD exchange rate are influenced by a range of factors, including the country's economic performance, inflation rate, interest rates, and external economic conditions. Depending on these factors, the FJD may experience slight appreciation or depreciation against other major currencies. However, significant variations are relatively rare, and the FJD exchange rate tends to stay within a predictable range.

Significance of FJD in the Global Economy

The Fijian dollar is of relatively low significance in the global economy. Fiji is a small island nation with a small economy, making the FJD less influential compared to major currencies like the US dollar or the euro. While it plays a vital role in Fiji's domestic economy, its impact on the global economy is limited.

Shocks Experienced by FJD and Correlation with Other Currencies

Like any currency, the FJD can experience shocks due to various factors such as changes in global economic conditions, geopolitical events, and natural disasters. While these shocks can temporarily impact the FJD exchange rate, the currency's relative stability and limited global significance result in less correlation with other major currencies. However, the FJD may have some correlation with regional currencies like the Australian dollar due to economic ties and trade relationships with neighboring countries.