RBF transfers $118m to Government

The Reserve Bank of Fiji (RBF) will transfer $118 million to Government after recording a $120.6 million profit, marking its fourth consecutive year of profits above $100 million.

The RBF Board approved its financial accounts yesterday for the financial year ended in July.

Governor Ariff Ali said the accounts were signed in less than two months, ahead of the three-month requirement under the Reserve Bank of Fiji Act.

Mr Ali said the RBF’s role was not to make a profit, but strong financial results were important for maintaining the institution’s credibility and reputation.

He said almost 75 per cent of the Bank’s income came from foreign reserves, while almost a quarter came from domestic bond interest or other interest income.

Lower global interest rates in key markets had affected the Bank’s income.

The RBF had initially expected a profit of close to $100 million, but an increase in interest rates helped lift the final result to $120.6 million.

Minister for Finance, Commerce and Business Development Esrom Immanuel said the strong financial performance reflected the RBF’s prudent financial management, investment of foreign reserves, monetary policy and financial sector oversight.

Mr Immanuel said the $118 million transfer would form part of Government’s revenue pool for the 2026–2027 financial year and had already been accounted for in the national budget.

He said the result came despite global uncertainty, including geopolitical tensions, volatile commodity prices, changing monetary policies and the fuel crisis.

"Over the past five years, the Reserve Bank had contributed about $548 million to Government," Mr Immanuel said.

Prime Minister Sitiveni Rabuka welcomed the $118 million transfer to Government, describing it as another positive indicator for the economy and a boost to confidence in Fiji’s economic outlook.

“I am proud of the work being done by our Reserve Bank and our economic institutions, but above all, I am proud of the resilience of the Fijian people,” Mr Rabuka said.

He said Fiji had faced significant global challenges but its economy continued to move forward.

“There is more work to do, and we remain focused on building on this progress for all Fijians,” he said.

Mr Ali said the RBF expected profits to be slightly lower in the new financial year because of lower global interest rates.

He said foreign reserves remained strong at about $3.9 billion.

Mr Ali also assured the public that Fiji’s financial system remained stable, with total assets of just below $40 billion, and that savings held in banks and the Fiji National Provident Fund were safe and secure.