Press Release No. : 21/2024
Date : 19 September 2024
Press Release No 21 – RBF Transfers Record Profit For Its 2023-2024 Financial Year To Government
The Reserve Bank of Fiji, following the signing of its audited financials at a special Board meeting today (19 September 2024) presented its profit for the financial year (FY) 2023-2024 to the Prime Minister and Minister for Foreign Affairs, Climate Change, Environment, Civil Service, Information, Public Enterprises and Veteran Affairs, Honourable Mr Sitiveni Rabuka.
The Governor and Chair of the Reserve Bank Board, Mr Ariff Ali in making the presentation highlighted that the Reserve Bank had achieved a new record net profit of $135.5 million for the financial year ended 31 July 2024, surpassing the all-time high profit of $102.2 million recorded in FY2022-2023. The unprecedented profit was attributed to the maintenance of a comfortable level of foreign reserves throughout the financial year guided by the Reserve Bank’s prudent investment strategies and complimented by prevailing higher interest rates in the global financial markets.
As required under the Reserve Bank of Fiji Act (1983), a total of $136.2 million will be transferred to the Government, inclusive of the net profit earned and $1.7 million constituting one-fifth of the Revaluation Reserve Account, after a net transfer of $1.0 million to the Reserve Bank’s General Reserves. The transfer of the $136.2 million testifies to the ongoing commitment of the Reserve Bank though not a profit making entity, to remain effective in meeting its core mandates not only in the FY2023-2024 but particularly over the years that the Reserve Bank had to steer the country in very challenging times.
Governor Ali, however, stressed that future profits will depend on the level of foreign reserves and prevalent interest rates in international financial market. He reaffirmed that the Reserve Bank remains committed to its dual monetary policy objectives of maintaining adequate foreign reserves and stable inflation. Despite the inflationary challenge in the FY2023-2024, foreign reserves remained healthy at $3.6 billion at the end of July 2024, sufficient to cover 5.8 months of retained imports, and projected to be adequate in the medium term. Given the stable outlook for the Reserve Bank’s dual monetary policy objectives the overnight policy rate (OPR) was maintained at 0.25 percent throughout the financial year to support economic activity.
The Reserve Bank also submitted its audited financial statements with its Operations Report for the year ended 31 July 2024 to the Honourable Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Professor Biman Chand Prasad, as required under Section 56 of the RBF Act. The Report highlighted the growth in the assets of the Fijian financial system, which stood at $30.9 billion at the end of July 2024 driven by a sound and stable yet competitive financial sector which continues to support economic activity, in line with the accommodative monetary policy stance maintained in FY2023-2024.
The Reserve Bank of Fiji Board has expressed its appreciation to staff for their stewardship in ensuring the Bank continues to meet its objectives effectively and pays tribute to all stakeholders and partners who have provided unwavering support to the Bank. The RBF Board looks forward to another challenging but rewarding 2024-2025 financial year.
RESERVE BANK OF FIJI
For further details, please contact: –
Mr Mervin Singh – Manager Corporate Communications:
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj