Press Release No. : 16/2022
Date : 23 September 2022
The Reserve Bank of Fiji (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).
The RBF reported a record high net profit of $42.0 million for the financial year despite challenging global financial markets. Unlike, previous years where interest income from foreign reserves contributed the bulk of the Bank’s revenue, 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, inclusive of $3.4 million being one-fifth of the Revaluation Reserve Account – foreign currency, and a net transfer of $1.0 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, Mr 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 Bank 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%) over domestic (3.6%) 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 stated 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 Bank 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 Bank’s stakeholders.