Prime Minister Laaulialemalietoa Leuatea Schmidt has described a warning from the International Monetary Fund (IMF) over proposed changes to Samoa’s central banking law as a “threat” and that "an organisation from outside should not come here and flex its muscles.” 

Speaking at his press conference on Friday, the Prime Minister said external organisations should not interfere in Samoa’s internal affairs.

His comments follow a letter from the IMF cautioning that the proposed reforms could weaken the Central Bank’s independence, including its institutional and financial autonomy, and increase the risk of political influence over monetary policy.

However, the Prime Minister rejected that notion, stressing that the CBS ultimately belongs to the State.

“The central bank is the Central Bank of Samoa. It is not the central bank of an international body that is here in Samoa and is run from outside,” he said. “The Central Bank is owned by the Government of Samoa.” He said that the government has full authority to make legislative changes.

“The government has the right to change what the government believes needs to be changed.” While acknowledging Samoa’s relationship with international partners, the Prime Minister said there is no say from outside organisations.

"The central bank is very important because it is where our money is monitored as it goes out and comes back in," he said, “We work together, we ask for assistance… but for deeper decisions on certain matters, there is no say from outside."

He questioned what he saw as overreaching by the IMF, asking: “At what point does the IMF stop interfering with the decisions made by the government that owns the central bank?”

The Prime Minister also pointed to international central banks. “No one from outside would go to New Zealand and control the central bank of New Zealand or Australia… I don’t think so.”

He said that CBS should operate under the government's authority, particularly following recent political changes.

“It should be under the umbrella of the government,” he said. The Prime Minister added that the issue would be discussed further once the Minister of Finance returns, with the possibility of legislative changes still under consideration.

“This… needs to be sorted… then we will make a decision and find a way to change the law.”

He also raised concerns about the leak of the IMF letter, describing it as an internal matter and criticising the way it had entered the public domain.

“The issue is within Samoa… the letter is leaked, and the letter is telling us what to do- no, that’s not how we do it — we are in charge,” he said. “I respect the international bodies because this is where the help comes from for the country,” he said. However, he said that the ultimate authority rests with Samoa. “Who operates it? The Government of Samoa. Who selects the governor? Samoa.”