$42m profit for central bank

The Reserve Bank of Fiji Picture: MONIKA SINGH

The Reserve Bank of Fiji recorded a net profit of $42 million despite challenging global financial markets.

The central bank also revealed that 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.

RBF governor Ariff Ali said 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.

According to the bank, at the end of July 2022, foreign reserves stood at $3.6 billion, equivalent to 8.4 months of retained imports cover.

Meanwhile the inflation rate was 5.2 per cent in July, primarily influenced by 12.3 per cent imported over 3.6 per cent domestic inflation, as external pressures significantly increased food and fuel prices.

Mr Ali said Fiji’s financial system remained resilient, with total gross assets of $26.7b as at July 31, 2022.

He said while risks to the domestic growth outlook remain, economic recovery had continued to strengthen, largely insulated by the revival of the tourism industry and its positive spill-over effects onto other sectors of the economy.

The RBF Board of Directors signed off on the bank’s audited financial statements for the year ending July 31 in its September meeting.

In a statement the RBF said as required under the RBF Act, a transfer of $44.4m would be made to the Government, inclusive of $3.4m being one-fifth of the Revaluation Reserve Account – foreign currency, and a net transfer of $1.0m to the General Reserves.

This compares with a transfer of $32.9m to the Government for the previous financial year.

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