August 20, 2009

Central Bank Muscles In On Capital Markets Body

Fijilive is reporting that the CEO of the Capital Markets, Mereia Volavola, has lost her job as part of the Reserve Bank's bid to take over the operations of developing and regulating the capital markets in the Fiji.

According to the illegal & treasonous Central Bank Guv, Sada Reddy, it's a logical move that will "consolidate the supervision and regulation of Fiji’s financial system and bring about greater efficiency and effectiveness in the operations of the CMDA."

Mmhmm. The only funny thing about this explanation is that both entities have two entirely different roles in our economy.

Our central bank, the Reserve Bank of Fij,i is charged with maintaining the stability of our currency, our money supply -- basically everything to do with the monetary policy of this country.

The CMDA regulates the licensing of securities professionals including brokers, dealers, investment advisers, unit trusts and their representatives, securities exchanges and central depositories. The CMDA essentially ensures that investors are protected against fraud, among it's other legal functions.

So it is most unclear how diverse interests can be protected under 1 entity.

This one will need close watching.

The Central Bank, with Sada Reddy at the helm, appears to be empire-building within the "money world" of this country. It's worth remembering that a special sector of "business minded" sorts have not forgotten that this same chappy, during the height of the '87 coup, made a killing for "special favours under the table" and siphoning money out of the country even though there were tight foreign exchange controls in place at the time.


Anonymous said...

Having been appointed by a Regime that doesn't understand the value or sanctity of independent institutions, it would appear that some of those they have appointed have similar difficulties.

Good Men (and women) Doing Something.... said...

There goes our capital markets....

Better start selling those shares....before you get stuck with worthless pieces of paper....