RBF records profit boost

he Reserve Bank recorded a net profit of $31.7 million for the 2020-2021 financial year. This was slightly higher than the $30.1 million in the preceding financial year.

The Reserve Bank of Fiji (RBF) Board at its meeting on September 23, 2021 signed off on the Bank’s audited financial statements for the year ending July 31, 2021.

A copy of the financial statements certified by the external auditors KMPG, along with a report of the Bank’s operations for the year was presented to the Minister for Economy, Aiyaz Sayed-Khaiyum, as per the requirements of Section 56 of the RBF Act (1983).

The improvement in profit was underpinned by a reduction in total operating costs.

A transfer of $32.9 million will be made to the Government, inclusive of $2.2 million being one-fifth of the Revaluation Reserve Account, following the transfer of $1.0 million to the General Reserve Account as required under the RBF Act.

The Governor and chairman of the Board, Mr Ariff Ali highlighted that despite the challenging global and domestic economic environment, the Bank achieved its monetary policy objectives of adequate level of foreign reserves and low inflation.

At the end of July 2021, foreign reserves totaled $3.1 billion (equivalent to 10.8 months of retained imports cover), while inflation stood at -0.4 percent.

In addition, Fiji’s financial system remained sound, with total gross assets at $24.1billion, as at 31 July 2021.

In terms of outlook, Governor Ali stated that economic recovery is largely dependent on the progressive easing of COVID-19 related restrictions, reopening of domestic businesses and the resumption of international tourism, which in turn is tied directly to vaccinating at least 80 per cent of the adult population.

Furthermore, continuing to assist vulnerable segments of society is imperative for sustaining livelihoods.

In light of this, the RBF is committed to maintaining an accommodative monetary policy stance to support the domestic economy as well as preserve external and financial stability.

The Board acknowledged the efforts of the leaders and staff of the Bank in achieving the various outcomes in the 2020-2021 financial year amidst the challenges and also extends its appreciation to all the Bank’s stakeholders for their continued support.