Press Release No. : 30/2024
Date : 06 December 2024
Press Release No 30 – Reserve Bank of Fiji Releases its August 2023-July 2024 Annual Report
The Honourable Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Professor Biman Chand Prasad, tabled the August 2023 – July 2024 Annual Report of the Reserve Bank of Fiji (RBF) in Parliament on 06 December 2024. The Report details the audited accounts and operations of the RBF for the financial year (FY) ending 31 July 2024.
Commenting on the publication, Governor Ariff Ali stated that the annual report highlights the Bank’s dedication to accomplishing its mandates and its continued efforts to support the Fijian economy amid unexpected economic developments and challenges. In terms of the Bank’s twin monetary policy objectives, inflation picked up in the FY, with headline inflation averaging 4.8 percent compared to 2.7 percent recorded in the previous FY. Despite inflationary challenges, foreign reserves remained adequate at around $3.6 billion, equivalent to 5.8 months of retained imports cover at the end of the FY (July 2024). The economy is projected to expand by 3.8 percent in 2024, following a 7.5 percent growth in 2023, underpinned by the services sectors largely due to a better-than-expected outturn in visitor arrivals.
The banking sector remained sound, stable and competitive during the FY, evidenced by strong capital positions, reduced non-performing loans and higher private sector credit. Given this supportive environment, additional loans were not provided by the RBF under the Disaster Rehabilitation & Containment Facility and Import Substitution & Export Finance Facility. In addition, capital controls were progressively relaxed on the back of comfortable foreign reserve levels, and in June 2024, the RBF increased the delegated limits to authorised dealers on capital transactions and selected payments. The insurance industry remained resilient and maintained a solvency surplus position, as well as satisfactory earnings and liquidity level. The Fiji National Provident Fund continued to meet its solvency requirement, while the capital markets exhibited growth in market capitalisation and funds under management by Managed Investment Schemes.
The RBF’s annual report also highlights the Bank’s drive towards innovation and dynamism in improving and modernising Fiji’s financial system. One of the key accomplishments in the FY was the progressive work on the digital transformation of the country’s payment system. Phase two of the National Payment System’s automated clearing house was launched in November 2023, enabling instant interbank transactions between commercial banks, followed by the continuation of phase three on integrating Fiji’s mobile network operators for payment interoperability.
As part of its continued focus on sustainability and inclusion, the RBF in June 2024 launched the “Natadola Roadmap to Inclusive Green Finance” in partnership with other Pacific Islands’ central banks, for the promotion of green financial inclusion across vulnerable Pacific Island countries. Additionally, the RBF together with the Ministry of Women, Children & Social Protection, the Ministry of Trade, Co-operatives, MSMEs and Communications, and private sector institutions, signed the Women in Finance (We-Fi) Code in March 2024, to boost support for women-led MSMEs.
Throughout the FY, the Bank commemorated its 50 years of central banking, which provided an opportunity for introspection on the Bank’s historical journey.
The RBF also finalised its strategic plan for the next five years, undertaking a comprehensive review of the Bank’s core statements, and acknowledges the valuable contributions of the Board, management, staff, and key stakeholders.
RESERVE BANK OF FIJI
For further details, please contact: –
Mervin Singh – Manager Corporate Communications
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj