Fiji financially stable: Reserve Bank of Fiji reports record $102.2 million profit

FIJI’S financial system remains sound and stable and the Reserve Bank of Fiji continues to keep a close eye on the financial sector stability.
Deputy Prime Minister and Minister of Finance Professor Biman Prasad made the statement yesterday after the Reserve Bank of Fiji (RBF) submitted its 2022-2023 audited financial statements with its operations report for its 2023 financial year.
The RBF recorded a net profit of $102.2 million for the financial year ending July 31, 2023, which, according to the RBF governor Ariff Ali, was an all-time high profit which directly resulted from higher interest rates in the global financial markets and prudent management of the nation’s foreign reserves invested in our major trading partner economies.
Prof Prasad said subsequently, the Government would receive $103.4m which included a profit of $102.2m plus $2.1m being one fifth of the Revaluation Reserve Account.
“The twin monetary policy objectives of maintaining adequate foreign reserves and price stability have been safeguarded at the end of July 2023,” he said.
“Foreign reserves stood at $3.6 billion, sufficient to cover 6.3 months of retained imports while inflation averaged around 2.7 per cent in 2022-2023.”
He said one of the key milestones in the last financial year also included the launch of the upgraded Real Time Gross Settlement and the establishment of a new Central Securities Depository system.
“This has been a major investment in the modernisation of our payments system and helps also in major improvements with Government securities management.”
Prof Prasad said the Government would continue to work together with the RBF in growing the economy, creating more jobs, ensuring financial sector stability and promoting price stability.
“The Fijian economy remains firm on its recovery path, led by a strong rebound in tourism-related sectors. Following a 20.0 per cent growth in 2022, the Fijian economy is projected to grow by 8 per cent this year and moderate to 3.8 per cent in 2024.”