[Photo: Litia Cava]

The government will not allocate the Reserve Bank of Fiji’s profit transfer to any specific purpose.

Finance Minister Esrom Immanuel states that the funds have already been accounted for in this financial year’s budget and will form part of the government’s overall revenue pool.

He was asked whether the money would be used to address expensive public debt or absorbed into government’s operational spending.

“So there’s no specific objective for the fund; it will be part of the revenue pool.”

Immanuel said the money would simply form part of the revenue available to government during the financial year.

Immanuel says the $117,975,891.51million will therefore enter Government’s general revenue pool rather than being assigned to a specific programme or expenditure.

This comes as the RBF expects its own profit to ease in the new financial year, with lower global interest rates likely to reduce returns on its foreign reserves.

Meanwhile, RBF Governor Ariff Ali says the level of profit recorded this year may not be sustained.

“So basically, your money at the banks is safe, your money at the FNPF is safe, and all your premiums at the insurance companies are safe.”

Ali explained that around three-quarters of the RBF’s income comes from interest earned on foreign reserves.

With global interest rates generally lower than six to twelve months ago, he said the RBF expects profits in the new financial year to be slightly lower.

On the stability of Fiji’s financial system, Ali adds that the RBF is closely monitoring a range of risks across banks, FNPF and insurance companies.

These include credit, operational and cybersecurity risks.

Ali said there was currently no major concern, assuring that people’s money held with banks, FNPF and insurance companies remains safe.