fiji, and no longer the “ new kid on the block ”. that title belongs to another bank now. you have adjusted well and in line with the economic conditions faced here. you continue to make significant contributions to fiji ’ s financial landscape in partnership with a wide group of stakeholders. i read recently that bsp won the connected world forum award for the best bank - led mobile money programme at the mobile money global summit and expo in dubai. the connected world awards celebrate the very best in mobile money with specific emphasis on innovation & service. congratulations are definitely in order. bis central bankers ’ speeches innovation is definitely a hallmark of bank south pacific ’ s services being provided across fiji and we are fully appreciative of your new technology rollouts. you were the first bank in fiji to introduce sms banking and you rightly boast the largest network of atms and wireless eftpos machines across the country. i note that this refurbished branch has revamped its customer service areas. understandably there has been a migration to the second floor, but also there is a new foreign exchange bureau accessible to the street. this is no doubt a natural response to the tourist traffic through nadi on a daily basis. you have all now had an opportunity to look at our new flora and fauna series of notes and coins, which have been in circulation since the 2nd january. we hope that the fiji public will be proud of their new currency and that it will continue to be a source of pride for all fijians for a long time. we at the reserve bank trust that the images on our currency will quickly become household names and provide instant recognition of our heritage and of the beauty that surrounds us here in fiji. the reserve bank will continue to roll out its awareness campaigns over the next several months, including to schools. logistically, in terms of issuance of our new currency, all the coins and the $ 10, $ 20, $ 50 and $ 100 notes commenced issuing on the 2nd january. however there will be a co - circulation period with most of the old design currency notes up to december of this year as we run down stocks. this co - circulation will not apply to the old $ 2 and $ 5 notes. the old design coins will remain in circulation, so for those who are already missing the queen you may take some comfort in this. the new $ 5 polymer or “ plastic ” note will be issued once we have withdrawn the existing $ 2 notes from circulation. this is

have to weigh together different measures and indicators in a reasonable way. this of course provides greater scope for a wider range of assessments. the financial crisis has, not least, also raised the question of to what extent monetary policy should take financial stability into account. this is an important question that should be analysed further. let me conclude by saying that it appears that the fiscal policy and monetary policy stimulation measures that are being implemented throughout the world are beginning to have the desired effects. the situation in the financial sector has improved and an economic recovery is now discernable. but it is still uncertain whether the recovery is stable or whether there is a risk that it will come to a halt as soon as the fiscal policy and monetary policy stimulation measures are phased out. deciding the appropriate time to begin the phase - out of the now very extensive monetary policy stimulation measures is a major challenge. if the phase - out begins too early there is a risk that the recovery will come to a halt. if we wait too long, there is a risk that we will need to increase the repo rate very quickly in order to meet the inflation target. this is a balance that is much easier to achieve in theory than in practice! however, as i have explained here today, my assessment at the latest monetary policy meeting was that it will still be necessary to keep the repo rate at this low level for a long time to come. thank you! 1. financial markets functioning better basis spread, basis points sweden euro area usa united kingdom jan - 07 apr - 07 jul - 07 oct - 07 jan - 08 apr - 08 jul - 08 oct - 08 jan - 09 apr - 09 jul - 09 oct - 09 note. the difference between 3 - month interbank rate and expected policy rate ( basis - spread ) sources : reuters ecowin and the riksbank 2. world trade stabilising world trade monitor index, 2000 = 100, seasonally - adjusted data source : netherlands bureau for economic policy analysis 3. growth in asia gdp, annual percentage change - 5 - 5 china south korea - 10 - 10 taiwan japan - 15 - 15 sources : national sources 4. house prices in the usa index, january 2000 = 100, seasonally - adjusted data source : standard & poor's 5. growth increasing in the world gdp, quarterly change in per cent calculated as an annual rate, seasonally - adjusted data - 2 - 2 - 4 - 4 euro area - 6 - 6 usa - 8 - 8