Fiji’s Central Bank Delivers Record Profit: What It Means for the Economy

The Reserve Bank of Fiji has reported a net profit of $135.2 million as of July 31, 2024. During a recent Cheque Handover event, RBF Governor Ariff Ali announced that the total amount transferred to the Government is $136,231,255.80, which includes one-fifth of the bank’s revaluation reserves, in accordance with the RBF Act.

Ali explained that the RBF is required to submit its financial reports three months following the end of the financial year; however, the Board, along with the accountant’s approval, has finalized and signed off on the financial accounts ahead of schedule. He noted that had the Bank provided the funds to the Government by the end of October, it would have resulted in savings of $750,000 in interest.

Over the past two years, the RBF has contributed a total of $240 million in profit, which represents about two percent of Fiji’s Gross Domestic Product. This has contributed to a further reduction in the debt-to-GDP ratio by two percent.

In the last decade, the RBF has transferred over $500 million to the Government, and since its establishment, it has provided nearly $1 billion in accumulated profits. The Governor emphasized that if the Central Bank had not made these contributions, the debt-to-GDP ratio would have been 10 percent higher. He also noted that the RBF is the only statutory entity that regularly transfers its profits to the Government.

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