Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development, and Statistics, Professor Biman Prasad, presented the Reserve Bank of Fiji (RBF) Annual Report for the fiscal year 2023-2024 in Parliament this week. This report outlines the RBF’s audited financial statements and operational activities for the year ending July 31, 2024.
In his remarks, Governor Ariff Ali emphasized the Bank’s commitment to meeting its mandates while supporting the Fijian economy amidst various economic challenges. He noted that inflation averaged 4.8% for the fiscal year, an increase from 2.7% the previous year. However, the economy’s foreign reserves remained robust, standing at approximately $3.6 billion — enough to cover 5.8 months of imports by the close of the fiscal year.
Looking ahead, the economy is expected to grow by 3.8% in 2024, following a remarkable growth of 7.5% in 2023, mainly driven by a resurgence in the tourism sector and better-than-anticipated visitor numbers.
Professor Prasad also remarked on the resilience of the Fijian economy despite global uncertainties such as slowing economic growth, inflationary pressures, and geopolitical tensions. The tourism industry has notably exceeded expectations, with visitor arrivals increasing by 6.5% from January to October 2024 compared to the same time last year.
The banking sector remained strong and competitive throughout the fiscal year, bolstered by solid capital positions and lower non-performing loan rates. Although the RBF did not issue additional loans under its Disaster Rehabilitation and Containment Facility or Export Finance Facility during the fiscal year, it began to relax capital controls due to sufficient foreign reserves.
Ali noted that the insurance industry maintained its operations successfully, showing good solvency, earnings, and liquidity. The Fiji National Provident Fund also adhered to solvency requirements, while the capital markets displayed positive growth.
A significant highlight of the RBF’s Annual Report was its commitment towards technological advancement in the financial system. The RBF made strides in the digital transformation of Fiji’s payment system, launching phase two of the National Payment System’s automated clearing house in November 2023. This phase enables instant interbank transactions, with ongoing efforts to ensure mobile payment interoperability.
The Reserve Bank also focused on sustainability and inclusivity. In June 2024, it launched the “Natadola Roadmap to Inclusive Green Finance” in collaboration with other Pacific Islands’ central banks to promote green financial inclusion. In addition, the RBF, alongside other government and private sectors, endorsed the Women in Finance Code to empower women-led micro, small, and medium enterprises (MSMEs).
The report further celebrated the RBF’s 50 years of central banking, allowing reflection on its legacy, and concluded with a comprehensive strategic plan for the next five years, acknowledging the contributions of stakeholders involved.
In summary, the RBF’s report reflects a cautiously optimistic outlook for the Fijian economy, highlighting a path of resilience amid global challenges and a firm commitment to innovation, sustainability, and inclusivity. This reinforces the belief that the future holds promise for Fiji’s economic stability and growth.
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