Devaluing Fiji's currency in 2009 aimed to boost trade balance and economic growth. While exports improved, imports also increased, limiting the impact on trade balance. Inflation, influenced by oil and food prices, hindered the effectiveness of devaluation. The rise in oil prices raised production costs, prompting expansionary monetary policy to stimulate demand. However, low interest rates in an inflationary environment reduced domestic savings and caused liquidity issues, hampering investment. This lack of investment in export sectors weakened the transformation process from imports to exports, hindering the success of devaluation in improving trade balance.