Fiji’s Central Bank: How $135.2 Million in Profits is Shaping the Economy

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

Governor Ali explained that while the RBF is required to submit its financial reports three months after the end of the financial year, the Board, with the approval of the accountant, has finalized the approved financial accounts ahead of schedule. He mentioned that if the funds had been transferred to the Government by the end of October, it would have resulted in savings of $750,000 in interest.

In the past two years, the RBF has contributed a total of $240 million in profits, representing approximately two percent of Fiji’s Gross Domestic Product (GDP). This contribution has helped to further reduce the debt-to-GDP ratio by another two percent. Over the last decade, the RBF has provided the Government with more than $500 million, and since its establishment, the total profits distributed to the Government have approached $1 billion.

Governor Ali emphasized that the profits provided by the Central Bank have significantly impacted the debt-to-GDP ratio, potentially keeping it 10 percent lower than it would have been without these contributions. He noted that the RBF is the only statutory body consistently transferring its profits to the Government.

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