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Foreign Reserved decreased in March

Radio & TV Tonga, Nuku’alofa,21/05/2018

The foreign reserves decreased slightly to 447.7 million pa’anga in March 2018 due to higher payments mainly for professional services and imports of wholesale and retail goods.

This is equivalent to eight months of import cover, which is still above the Reserve Bank’s minimum range of three to four months.

The impact of TC Gita in February on the domestic food supply is expected to push domestic inflation upward.

Over the year, the headline inflation is anticipated to be around four per cent compared to three point four per cent in February 2018.

The anticipated annual headline inflation is due to higher expectations in the price of food, transportation, tobacco, alcohol and Tongan kava.

© Radio and Television Tonga News