Fiji’s central bank reported record net profit of $42.0 million for the 2021-2022 financial year despite tough global financial markets.
According to the Reserve Bank of Fiji, the result for the 2021-2022 financial year was supported by an increase in interest income from national bonds and an increase in numismatic sales, unlike in previous years when interest income from reserves foreign exchange contributed the bulk of the bank’s income.
He said that, as required by the RBF Act, a transfer of $44.4 million would be made to the government, including $3.4 million representing one-fifth of the revaluation reserve account – foreign currency, and a transfer net of $1.0 million to general reserves. .
This compares to a transfer of $32.9 million to the government for the previous fiscal year.
RBF Governor and Chairman Ariff Ali said that despite global economic turmoil caused by the Russian-Ukrainian war and unusually high commodity prices affecting the Fijian economy, the bank has achieved its main objectives.
He said that at the end of July 2022, foreign exchange reserves were sufficient at $3.6 billion, equivalent to 8.4 months of retained import cover.
“The inflation rate was 5.2% in July, mainly influenced by imported inflation (12.3%) compared to domestic inflation (3.6%), as external pressures significantly increased the food and fuel prices,” Ali said.
“Fiji’s financial system remained resilient, with total gross assets of $26.7 billion as of July 31, 2022.”
Mr Ali said that while risks to the outlook for domestic growth remained, the economic recovery had continued to strengthen, largely insulated by the revival of the tourism industry and its positive spillovers to other sectors of the country. economy.
“With a stable outlook for foreign exchange reserves and inflation, the bank is committed to maintaining an accommodative monetary policy to foster conducive macroeconomic conditions for Fiji’s economic recovery.”