The Fiji Dollar (FJD) is the official currency used in the island nation of Fiji, a country known for its beautiful beaches.

Despite being an exotic currency, the Fiji Dollar plays an important role in both the local and international financial markets, especially because of the country’s thriving tourism industry. 

Read on to learn what makes the Fiji Dollar unique, its history, and how it functions in the economy.

What is Fiji Dollars (FJD)?

The Fiji Dollar (FJD) is the official currency of Fiji, an island nation in the South Pacific. It was introduced in 1969, replacing the Fijian pound.

The Fiji Dollar is used for all everyday transactions in the country, including in tourism, one of the main industries driving Fiji’s economy.

The FJD is divided into 100 cents, and it comes in both coins (5, 10, 20, 50 cents, and 1 and 2 dollars) and banknotes (5, 10, 20, 50, and 100 dollars).

The designs on the currency feature notable Fijian landmarks, wildlife, and cultural symbols, reflecting the nation’s rich heritage.

While the Fiji Dollar isn’t widely traded internationally, it holds significant importance within Fiji’s local economy.

The Fiji Dollar is a perfect example of an exotic currency.

History of the Fiji Dollar (FJD)

The Fiji Dollar has a rich history that reflects the country’s development. Before the introduction of the FJD, Fiji used the British Pound as its official currency when it was still under British colonial rule. 

In 1969, it replaced the Fijian pound at a rate of 1 FJD = 1.17 Fijian pounds. Since then, it has become a symbol of the country’s independence and economic growth.

The FJD is abbreviated as “$,” but to differentiate it from other dollar currencies, it is often written as FJ$. 

Its introduction has helped streamline trade and tourism for the island, making it easier for locals and visitors to conduct business.

Exchange Rate System of the Fiji Dollar

The value of the Fiji Dollar fluctuates based on global and local market factors, such as foreign investment, the country’s economic health, and international trade. 

The managed float system governs the FJD, allowing the Reserve Bank of Fiji to influence its value and intervene when needed to keep the currency stable.

Traders less commonly exchange the FJD compared to major currencies like the U.S. Dollar or Euro, which makes it susceptible to larger price swings.

Despite this, Fiji’s stable tourism and agricultural sectors help support its strength.

Subdivisions and Denominations of the Fiji Dollar

Just like other currencies, the Fiji Dollar has subdivisions and different denominations to help with daily transactions. 

It is divided into smaller units called cents. 1FJD = 100 cents

The currency is available in both coins and banknotes, which come in different values to make it convenient for both small and large purchases.

Coins

Fiji issues coins in the following denominations: 5 cents, 10 cents, 20 cents, 50 cents, 1 FJD, 2 FJD

These coins are often used for everyday purchases like groceries, transportation, or snacks.

Banknotes

The banknotes come in higher denominations for larger purchases and transactions. 

its banknotes are available in 5 FJD, 10 FJD, 20 FJD, 50 FJD, 100 FJD

Each banknote features unique Fijian symbols, culture, and wildlife, celebrating the rich heritage of the nation.

Fiji’s Economy and the Role of the Fiji Dollar

Fiji’s economy relies heavily on industries such as tourism, sugar production, and agriculture. 

Tourism is particularly vital, with thousands of tourists visiting Fiji’s islands every year, contributing to the economy by spending Fiji Dollars on accommodation, food, and activities.

The sugar industry plays a large part in exports, helping bring foreign currency into the country. 

This strengthens the economy and helps support the value of the Fiji Dollar. 

Like many countries with exotic currencies, Fiji faces challenges such as natural disasters like cyclones, which can disrupt the economy and affect the value of the FJD.

It remains essential for locals, as it directly impacts the price of goods and services, especially for imported items.

Economy and Challenges for the Fiji Dollar

Fiji’s economy is highly dependent on external factors such as tourism and international trade. 

Tourism helps bring foreign currency into the country, which strengthens it, but external disruptions, like global recessions or natural disasters, can affect tourist numbers, hurting the economy.

Another major industry is sugarcane farming, which has historically been a key export. However, the global prices of sugar fluctuate, which can affect the value of the Fiji Dollar as well.

Despite these challenges, it remains relatively stable due to prudent management by the Reserve Bank of Fiji, ensuring that inflation stays under control and the economy remains open for business and investment.

Conclusion

The Fiji Dollar (FJD) is an essential part of Fiji’s economy and culture, supporting its tourism, trade, and daily transactions. 

Although many consider it an exotic currency because of its limited trading volume on the global stage, it holds great significance for the people and businesses in Fiji.

Knowing the it helps paint a clearer picture of Fiji’s economy, the industries that sustain it, and how this small island nation interacts with the global market. 

While the FJD may not be as widely recognized as the U.S. Dollar or Euro, it plays a crucial role in the lives of Fijians and visitors alike.