RBF: Record High $42m Profit

The Reserve Bank of Fiji has reported a record high net profit of $42 million for the financial year despite challenging global financial markets.
25 Sep 2022 15:18
RBF: Record High $42m Profit
Reserve Bank of Fiji. Photo: Leon Lord

The Reserve Bank of Fiji has reported a record high net profit of $42 million for the financial year despite challenging global financial markets.

RBF board of directors signed off on the Bank’s audited financial statements for the year ending 31 July 2022 at its September meeting.

A copy of the financial statements certified by the external auditors, KPMG, and a report of the Bank’s operations was presented to the Honourable Minister for Economy, Aiyaz Sayed-Khaiyum, as man­dated in Section 56 of the RBF Act (1983).

In previous years, interest in­comes came from foreign reserves contributed the bulk of the RBF’s revenue.


Contributing factor

However, the out-turn in the 2021-2022 financial year was under­pinned by higher interest income from domestic bonds and increased numismatic sales.

As required under the RBF Act, a transfer of $44.4 million will be made to the Government.

This is inclusive of $3.4 million being one-fifth of the Revaluation Reserve Account – foreign curren­cy, and a net transfer of $1 million to the General Reserves.

This compares with a transfer of $32.9 million to the Government for the previous financial year.

The Governor and chairman of the board, Ariff Ali, highlighted that despite the global economic turbulence caused by the Russia-Ukraine war and the uncommonly higher prices of commodities af­fecting the Fijian economy, the RBF achieved its key objectives.

At the end of July 2022, foreign reserves was adequate at $3.6 bil­lion, equivalent to 8.4 months of retained imports cover.

The inflation rate was 5.2 percent in July, primarily influenced by im­ported (12.3 per cent) over domestic (3.6 per cent) inflation, as external pressures significantly increased food and fuel prices. Fiji’s financial system remained resilient, with to­tal gross assets of $26.7 billion as at 31 July 2022.

Governor Ali said that while risks to the domestic growth outlook re­main, economic recovery has con­tinued to strengthen, largely insu­lated by the revival of the tourism industry and its positive spill-over effects onto other sectors of the economy.

With a stable outlook for foreign reserves and inflation, the RBF is committed to maintaining an accommodative monetary policy stance to foster conducive macro­economic conditions for Fiji’s eco­nomic recovery.

The board commended the man­agement and staff of RBF for its achievements in the 2021-22 finan­cial year despite the challenges and acknowledged the ongoing support of the RBF’s stakeholders.


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