The Reserve Bank of Fiji recorded a net profit of $31.7 million for the 2020-2021 financial year, slightly higher than the $30.1 million in the preceding financial year.
The RBF Board at its meeting on 23rd September signed off on the Bank’s audited financial statements for the year ending 31st July 2021 and a copy of the financial statements certified by the external auditors KMPG, along with a report of the Bank’s operations for the year was presented to the Minister for Economy, Aiyaz Sayed-Khaiyum, as per the requirements of Section 56 of the RBF Act (1983).
The improvement in profit was underpinned by a reduction in total operating costs and a transfer of $32.9 million will be made to the Government, inclusive of $2.2 million being one-fifth of the Revaluation Reserve Account, following the transfer of $1 million to the General Reserve Account as required under the RBF Act.
RBF Governor Ariff Ali says despite the challenging global and domestic economic environment, the Bank achieved its monetary policy objectives of adequate level of foreign reserves and low inflation.
He says at the end of July 2021, foreign reserves totaled $3.1 billion (equivalent to 10.8 months of retained imports cover), while inflation stood at -0.4 percent.
Ali adds Fiji’s financial system remained sound, with total gross assets at $24.1billion, as at 31 July 2021. Ali also stated that economic recovery is largely dependent on the progressive easing of COVID-19 related restrictions, reopening of domestic businesses and the resumption of international tourism, which in turn is tied directly to vaccinating at least 80 percent of the adult population.
He says continuing to assist vulnerable segments of society is imperative for sustaining livelihoods.
Ali further says in light of this, the RBF is committed to maintaining an accommodative monetary policy stance to support the domestic economy as well as preserve external and financial stability.
