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. This report provides a comprehensive overview of the Bank’s audited financial accounts and operational performance for the fiscal year ending July 31, 2024.
In his remarks, Governor Ariff Ali emphasized that the report underscores the Reserve Bank’s commitment to fulfilling its mandates while supporting the Fijian economy through various economic challenges. He noted that inflation increased during the fiscal year, averaging 4.8 percent, compared to the previous year’s 2.7 percent. However, adequate foreign reserves remained at approximately $3.6 billion, which is equivalent to 5.8 months’ worth of retained imports as of July 2024.
The Fijian economy is anticipated to grow by 3.8 percent in 2024, following a robust 7.5 percent growth in 2023, largely driven by positive performance in the services sector, particularly due to a rise in visitor arrivals.
The banking sector in Fiji has demonstrated strength and stability throughout the financial year, characterized by strong capital positions and a decrease in non-performing loans. As a result, the Reserve Bank did not issue additional loans under certain disaster response facilities. Capital controls have also been gradually relaxed due to comfortable foreign reserve levels.
Governor Ali reported that the insurance industry remained resilient, maintaining solid solvency and liquidity positions. The Fiji National Provident Fund met its solvency requirements, while the capital markets showed growth in market capitalization and managed investment schemes.
The report highlights the Reserve Bank’s commitment to innovation in modernizing Fiji’s financial system. A significant achievement during the fiscal year was the progression of digital transformation in the payment system, including the launch of the second phase of the National Payment System’s automated clearing house.
Furthermore, the Reserve Bank has focused on sustainability and financial inclusion, launching the “Natadola Roadmap to Inclusive Green Finance” in partnership with other Pacific Islands’ central banks. Collaborations with the Ministry of Women, Children, and Social Protection, as well as other entities, led to signing the Women in Finance (We-Fi) Code to better support women-led micro, small, and medium enterprises.
The past fiscal year also marked the 50th anniversary of the Reserve Bank of Fiji, providing a moment for reflection on its historical journey. The Bank has formulated a strategic plan for the next five years, which includes a thorough review of its core statements, recognizing the contributions of the Board, management, staff, and key stakeholders.
In summary, the Reserve Bank of Fiji’s annual report showcases a resilient economy, a stable banking sector, a dedication to financial innovation, and a commitment to sustainability and inclusion. These developments reflect a hopeful and promising outlook for the country as it navigates through global uncertainties while focusing on growth and recovery.
This positive outlook signifies a robust commitment to economic development and the well-being of all Fijians, with continued efforts towards inclusivity and sustainability as vital parts of the financial landscape.
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