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 financial year ending July 31, 2024, during a recent session in Parliament. The report lays out the audited financial accounts and operational insights of the bank for the period.
In his comments about the report, Governor Ariff Ali emphasized the Reserve Bank’s commitment to its mandates and its resilience in supporting the Fijian economy amidst various economic challenges. He noted that the country’s inflation rate rose to an average of 4.8% during the financial year, up from 2.7% the previous year. However, he reassured that foreign reserves remain robust at approximately $3.6 billion, sufficient to cover 5.8 months of retained imports.
Looking ahead, Ali projected a 3.8% expansion for the economy in 2024, building on a significant growth of 7.5% in 2023, largely driven by an unexpected increase in visitor arrivals in the service sectors.
Highlighting the Fijian economy’s resilience in the face of global uncertainties like inflationary pressures and geopolitical tensions, Professor Prasad acknowledged the tourism sector’s performance. He noted that visitor numbers increased by 6.5% from January to October in 2024 compared to the same months the previous year, which has positively impacted the post-pandemic recovery.
The banking sector has maintained stability, characterized by strong capital positions, a decrease in non-performing loans, and increased private-sector lending. Consequently, the Reserve Bank did not issue additional loans under its Disaster Rehabilitation and Containment Facility during the fiscal year.
Governor Ali also mentioned the gradual relaxation of capital controls due to comfortable foreign reserves. The insurance industry showed resilience, maintaining a solvency surplus, and the Fiji National Provident Fund has continued to meet its solvency requirements.
Innovation and modernization within Fiji’s financial systems have been highlighted, including significant advancements in the digital payment system. The automated clearing house’s second phase was launched in November 2023, facilitating instant interbank transactions.
In a progressive effort towards sustainability, the Reserve Bank launched the “Natadola Roadmap to Inclusive Green Finance” in June 2024, aiming to enhance green financial inclusion alongside other Pacific Islands’ central banks. Furthermore, a code to support women-led micro, small, and medium enterprises (MSMEs) was signed, showcasing the bank’s focus on inclusive economic growth.
As the Reserve Bank celebrated 50 years of central banking, it initiated a comprehensive review of its strategic plan, ensuring continued engagement with stakeholders to enhance performance and stability in the coming years.
This report not only reflects the resilience of the Fijian economy but also indicates a friendlier environment for investments and innovations that could lead to sustainable growth in the future.
Summary: The Reserve Bank of Fiji’s Annual Report indicates a resilient economy, with anticipated growth of 3.8% in 2024, despite challenges such as inflation and global uncertainties. Significant developments in the banking sector, positive tourism trends, and innovations in financial systems signal a hopeful future for Fiji’s economic stability and inclusiveness.
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