The Reserve Bank of Fiji recorded a net profit of $102.2 million for the financial year ending 31 July 2023.
The audited 2022-2023 financial statements were signed at a special board meeting in Suva today.
This was done under Section 56 of the RBF Act where the central bank must submit its audited financial statements along with its operation reports.
RBF Governor Ariff Ali said the all-time high profit directly resulted from higher interest rates in the global financial markets and prudent management of the nation’s foreign reserves invested in our major trading partner economies.
He said required under the Act, $103.4 million will be paid to the Government including $2.1 million being one-fifth of the Revaluation Reserves Account, after a net transfer of $1 million to the General Reserves.
“This compares to $44.4 million transferred to the Government for the 2021-2022 financial year. Future profits to the Government will be contingent on the foreign reserves holdings and interest holdings and interest rates in international financial markets.”
He said RBF continued to satisfactorily achieve its key objectives of low inflation and maintaining an adequate level of foreign reserves and the annual headline inflation averaged 2.7 per cent in the 2022-2023 financial year, primarily influenced by imported inflation.
Ali said at the end of July 2023, foreign reserves were adequate at $3.6 billion, sufficient to cover 6.3 months of retained imports.
He said given the comfortable outlook of the Bank’s twin monetary policy objectives; an accommodative monetary policy stance was maintained throughout the review period to support Fiji’s post pandemic economic recovery.
He added the financial systems, with gross assets of $28.7 billion, remained strong and well capitalised, supported by both off-site and on-site prudential oversight.
“Despite the weakness in the global economy, mainly from tighter monetary policy in major countries, the Fijian economy remains firm on its recovery path, led by a strong rebound in tourism-related sectors.”
“Following a 20 per cent growth in 2022, the Fijian economy is projected to grow by eight per cent this year and moderate 3.8 per cent in 2024.”
