Honourable Sitiveni Rabuka CF, OBE (Mil), OSt.J, MSD
Prime Minister and Minister for Foreign Affairs, Climate Change and Environment, Civil Service, Information and Public Enterprises
Remarks at Ceremony for Transfer of Profits from Reserve Bank of Fiji to the Government of Fiji
Tower 11, RBF Building Thursday 19 September 2024
Pratt Street, Suva 10.00am
Salutations
• Deputy Prime Minister and Minister for Finance, Professor Biman Prasad
• Cabinet Ministers & Assistant Ministers
• Your Excellencies, Members of the Diplomatic Corps
• The Governor and Chair of the Reserve Bank of Fiji Board, Mr Ariff Ali,
• Executive Management and Staff of the Reserve Bank of Fiji;
• Ladies & Gentlemen.
1. Ni sa Bula Vinaka & a very Good Morning to you All.
Introductory Acknowledgement
2. I would like to begin by acknowledging the Traditional Owners of the land on which we stand today.
3. Ki Nadonumai, vua na Turaga na Tui Suva
4. I pay my respects to their Chiefs, both past and present, as well as emerging leaders and members of the Vanua o’ Nadonumai who may be present here this morning.
5. I acknowledge their role in caring for the Vanua.
6. I am delighted to be here today to officiate the handing over of the profits made by the Reserve Bank of Fiji to the Government of Fiji.
RBF Profits since 1990s
7. I vividly recall, during my time as Prime Minister in the 1990s, when the profits made by the Central Bank stood averaging $12 million dollars.
8. Thirty years later, I am pleased to see how far we’ve progressed as a nation, with profits exceeding $100 million since 2022 – and today we are celebrating a record profit of FJ$136.2m million this financial year.
RBF Growth (Profit) a Reflection of Sound Monetary Policies
9. This growth is not only a reflection of the sound management of monetary policies of the Reserve Bank of Fiji, but also of Fiji’s resilience in economic stability and steady growth over the years.
10. Despite the unprecedented challenges that has confronted us in recent years – such as political upheavals, the global financial crisis and its aftershocks, natural disasters and the impacts of climate change, and more recently the COVID 19 pandemic – these have tested our economic policies and strategies.
The Role of Central Banks to be Independent
11. Yet, we must acknowledge that our progress highlights the importance of maintaining a strong and independent central bank – one that remains persistent and consistent in its management of monetary policy.
12. I am reminded of the United Kingdom’s experience in the 1970s and 1980s – when it’s Central Bank – the Bank of England struggled with unclear direction for monetary policy. Various frameworks and policies were attempted, but discarded.
13. This is because political events influenced the Central Bank of England’s interest rates and monetary policies more than the country’s economic indicators.
14. The most important contribution central banks make in a developing country is to ensure monetary stability, determined by country’s economic indicators. This is critical for economic growth and development in the country.
Foreign Reserves
15. It is clear that the unprecedented profits made this financial year, is the result of the Bank’s prudent investment decisions with the nation’s foreign reserves, where it took advantage of prevailing high interest rates in global financial markets.
16. I am told that as of yesterday, foreign reserves reached a new record of $3.76 billion, covering 6.1 months of Fiji’s retained imports of goods and services.
Conclusion
17. While the Reserve Bank is a central bank, and profit is not its primary purpose, it was nonetheless able to record high profits while meeting its statutory role to ensure adequate foreign reserves and stable inflation.
18. Central banks also play an essential role in the regulation and development of the financial sector.
19. The Reserve Bank of Fiji has contributed to various initiatives over the years, most notably, the reform of the payment system in Fiji in the last 3 years.
20. On that note, please join me in congratulating the Reserve Bank on its excellent stewardship.
21. I want to recognize and acknowledge the leadership of our central bank, the Board, the Governor, Senior Managers and all the staff of the Reserve Bank of Fiji for successfully creating the enabling environment for growth.
22. I thank you all for your commitment and wish you well for the future.
23. Vinaka vakalevu.