The Reserve Bank of Fiji has indicated that recent data collected over the past two months may lead to an adjustment of the anticipated two percent economic slowdown previously predicted for this year. During a media conference, RBF Governor Ariff Ali announced expectations for the economy to grow slightly by three percent in 2024, alongside forecasts for a prosperous year in 2025.
The Central Bank reported that foreign reserves have reached a record high of $3.77 billion, which is sufficient to cover Fiji’s import expenses for the next six months. Ali also noted that the total assets held by financial institutions amount to $30 billion, assuring the public that all financial institutions are strong and resilient.
Additionally, Ali mentioned that interest rates in global markets have recently decreased, with the United States cutting its rates by 0.5 percent. He expressed optimism for 2024, stating, “Hopefully, it’s going to be a good year.”
In compliance with the Reserve Bank of Fiji Act of 1983, a total of $136.2 million will be transferred to the Government, which includes net profits earned and $1.7 million representing one-fifth of the Revaluation Reserve Account. This transfer follows a net contribution of $1 million to the Reserve Bank’s General Reserves.
This transfer of $136.2 million underscores the Reserve Bank’s commitment to effectively fulfill its core mandates, even as a non-profit entity, and highlights its efforts to navigate Fiji through challenging economic circumstances over the years.