Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Professor Biman Prasad, presented the Reserve Bank of Fiji’s Annual Report for the period of August 2023 to July 2024 in Parliament this week. The report provides a comprehensive overview of the Reserve Bank’s audited accounts and operational performance for the concluded financial year.
Governor Ariff Ali commented that the annual report underscores the Bank’s commitment to fulfilling its mandates, especially in its role in supporting the Fijian economy amidst a range of economic challenges. He noted that inflation rose to an average of 4.8 percent during the financial year, compared to 2.7 percent in the prior year. Nevertheless, the foreign reserves remained healthy at approximately $3.6 billion, equivalent to 5.8 months of retained imports as of July 2024.
The Fijian economy is expected to grow by 3.8 percent in 2024, following a significant growth of 7.5 percent in 2023, largely driven by the services sector due to stronger-than-anticipated visitor arrivals in the tourism industry. Professor Prasad remarked on the remarkable resilience the Fijian economy has exhibited in light of global factors such as slowing growth, inflationary pressures, and geopolitical tensions.
Visitor arrivals surged by 6.5 percent in the first ten months of 2024 compared to the same period last year, highlighting the tourism sector’s pivotal role in post-pandemic recovery. The banking sector remained robust, demonstrating stability with solid capital positions, reduced non-performing loans, and increased private-sector credit.
In a supportive economic climate, the Reserve Bank of Fiji did not issue additional loans under its Disaster Rehabilitation and Containment Facility and Import Substitution and Export Finance Facility. Additionally, capital controls were gradually eased, allowing for increased delegated limits on capital transactions amid comfortable foreign reserve levels.
The insurance sector showed resilience, maintaining a strong solvency position alongside satisfactory earnings and liquidity. The Fiji National Provident Fund met its solvency requirements, while capital markets showed growth in market capitalization.
The RBF’s report also spotlighted its innovative efforts to modernize Fiji’s financial system, including significant advancements in the digital transformation of the nation’s payment system. The second phase of the National Payment System’s automated clearing house was initiated in November 2023, enabling instant interbank transactions between commercial banks, with future integration plans for mobile operators.
Moreover, as part of its commitment to sustainability and inclusivity, the RBF recently launched the “Natadola Roadmap to Inclusive Green Finance” to promote green financial inclusion across vulnerable Pacific island countries. The RBF, in collaboration with various ministries and private sector entities, signed the Women in Finance (We-Fi) Code to enhance support for women-led micro, small, and medium enterprises.
The report marks a celebration of 50 years of central banking in Fiji, allowing the RBF an opportunity to reflect on its historical progress, while also finalizing its strategic plan for the coming five years after thoroughly reviewing its core statements.
The overall message from the report embraces a hopeful outlook for the Fijian economy, emphasizing resilience, strategic development, and inclusivity as keys to thriving in a complex global landscape.
Summary: The Reserve Bank of Fiji’s Annual Report indicates an optimistic economic forecast, with a projected 3.8% growth for 2024, supported by a robust tourism sector and financial stability. The report highlights the bank’s commitment to sustainability and innovation, marking significant milestones in enhancing Fiji’s financial landscape.
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