execution including e - trading and platforms, prime brokerage, governance, risk management and compliance, and confirmation and settlement. the code is principles - based rather than rules - based. there are a number of reasons why this is so but, for me, an important reason is that the more prescriptive the code, the easier it is to get around. rules are easier to arbitrage than principles. the more prescriptive and the more precise the code, the less people will think about what they are doing. if it ’ s principles - based and less prescriptive then market participants will have to think about whether their actions are consistent with the principles of the code. the code is not a procedures manual. rather, the code articulates principles that need to be taken into account. individual firms may then take these principles and reflect them in their own procedures manuals. our aim in setting out these principles is to provide market participants with the framework in which to think about how they, for example, handle their orders. the emphasis here is very much on the word ‘ think ’. 1 / 4 bis central bankers'speeches these principles of good practice have helped to restore confidence and promote the effective functioning of the wholesale fx market. in my view, the fx market is in a better place than it was a few years ago. that is confirmed by surveys of market participants too, including the one conducted by the gfxc a couple of years ago. the code has also been adopted by a number of securities regulators round the world as the primary reference for their oversight of the fx market, including in the uk, in china and in my own market australia. when we launched the code, it was agreed that the code would be reviewed by the gfxc every three years to ensure it remained appropriate and to also ensure it stayed current with the ongoing evolution of the fx market. hence, around two years ago, the gfxc surveyed market participants to assess what areas of the code needed to be reviewed. 2 the primary response of market participants was that the code remained fit for purpose and changes should only be made as necessary. the strong guidance was that changes to the code should be contained to a few areas. the gfxc identified a few key areas requiring review to ensure that the code continues to provide appropriate guidance and contributes to an effectively functioning market, and remains in step with the evolution of the market. 3 over the past 18 months, various working

first half of this year. on the production side there has been mixed results. gold production has been declining significantly over last year. this year again there are no expectations of a significant pick up in gold output and this is quite unfortunate as this means we are unable to capitalize on the existing high world market price. cane and sugar production are expected to improve this year after declining last year due to the two major floods. data from the fiji sugar corporation reveals that cane crushed so far this year is around 10 percent higher than last year and more sugar has been produced with a further improvement in the tcts ratio. it is especially heartening to see the improvements of the sugar reforms now slowly coming to fruition and there is still more work being done in this critical industry of ours. the tourism industry continues to be robust despite some declines in visitor arrivals last year and the early part of this year due to natural disasters. gross earnings for 2012 were $ 1. 3 billion and this momentum is expected to continue over the medium term. right now we are in the peak tourism season and data on room occupancy and visitors from our major markets, such as australia and new zealand, are favourable. ladies and gentlemen, the reserve bank of fiji has maintained an accommodative monetary policy stance since november 2011 and the banking system is awash with liquidity, which has put consistent downward pressure on market interest rates. lending rates in the financial system are now hovering at historically low levels while capital and money market rates also continue to trend downwards. against this background, domestic credit has continued to gain momentum with private sector credit growth expanding by 9. 6 percent in june, further signaling the improved confidence in the economy. our challenges whilst we may applaud ourselves for the progress we have made in raising our growth prospects and revitalising some of our sectors on the backdrop of a weak global economy and other domestic challenges – many other hurdles face us and could restrict us from forging ahead on a path to sustainable growth. we totally agree with the imf comment that we can do more. while it is encouraging that investment has picked up and is poised to even surpass the government ’ s target of 25 percent this year, maintaining it at such levels remains an important challenge moving ahead. this requires that we continue with the current monetary and fiscal incentives and at the same time improve our ease of doing business. sentiments from the business community suggest that there are still a number of hurdles in registering and conducting business