The Central Bank of Samoa (CBS) says in May this year the country's official foreign reserves level hit the SAT$1.01 billion mark, which it said reflected the "healthy external position" of Samoa's economy.

In a press release issued by CBS last Friday and distributed by the Government's Press Secretariat to the media on Monday, the CBS described the foreign reserves level as "a historical high and reflecting a healthy external position for the Samoan economy to date".

The central bank said the level was equivalent to 10.3 months of import cover, which is well above the minimum of 4.0 months of imports of goods, and is considered sufficient and adequate for the viability of Samoa's foreign reserves.

The country’s foreign exchange reserves are largely sourced from the inflow of official aid from Samoa’s development partners as well as private sector inflows from tourism receipts, remittances and export earnings to name a few. 

 The valuable and ongoing assistance from Samoa’s development partners over the years – particularly the last three years to assist with the Government’s COVID-19 response – the re-opening of Samoa’s international borders since August 2022, and the steady rebuilding of the tourism industry in addition to high private remittances, have contributed notably to the current level of official foreign reserves.

 At the same time, given the high global downside risks, the CBS said uncertainties relating to the pandemic and increasing challenges from external factors (such as the high costs of international commodity prices for imported fuel and food), they've also maintained an adequate administration of exchange control measures to "cushion significant payment outflows over the last few years". 

Approximately 93 per cent of the country’s official foreign exchange reserves remain well-diversified across the major reserve currencies, highly liquid and safely secured in various overseas banks, including other major central banks, said the CBS statement. 

The other 7 per cent represents the country’s holdings of Special Drawing Rights (SDR) and Reserve Fund Position with the International Monetary Fund. Consistent with its mandate, the CBS said it will continue to prudently manage these holdings of foreign exchange reserves and ensure it is maintained at an adequate level to facilitate the country’s international obligations.