Fiji, April 10 -- The International Monetary Fund (IMF) has raised concerns that proposed changes to Samoa's central banking law could weaken safeguards and open the door to political influence over the country's financial system.

In a letter to Finance Minister Mulipola Anarosa Molioo, IMF Asia-Pacific Director Krishna Srinivasan warned the reforms risk undermining the independence of the Central Bank of Samoa.

"I am writing to express concern about the planned reforms to the Central Bank of Samoa (CBS) Act."

"In our assessment, the proposed amendments could weaken the independence of the CBS, including its institutional and financial autonomy."

Srinivasan stressed that central bank independence is critical to maintaining effective e...