Litia Cava 
From left: Minister for Finance Esrom Immanuel and Governor of the Reserve Bank of Fiji Ariff Ali during the handover[Photo: Litia Cava]
The Reserve Bank of Fiji says its general reserves are more than sufficient for its current needs.
RBF Governor Ariff Ali explained that the bank has been putting around $1 million ollars into its general reserves almost every year.
“So, every year we retain about a million dollars in our general reserves. Our general reserves are extremely strong.”
Ali’s comments come as the RBF reports a profit of just above $120 million for the 2025 to 2026 financial year.
The Governor said the strength of the general reserves means there was no immediate need to increase the annual allocation beyond the level the Bank has maintained in recent years.
But the RBF’s profit outlook is facing a different pressure.
Ali says almost 75 per cent of the bank’s income comes from interest earned on Fiji’s foreign reserves.
With interest rates falling in key international markets, he said the RBF’s income was already coming under some pressure.
The bank had initially expected its profit to be close to 100 million dollars.
However, an increase in interest rates during the financial year helped lift the final result to just above $120 million.
Ali adds that the RBF’s role is not to make a profit, but maintaining strong financials is important for the credibility of the institution and its reputation for managing its affairs well.
The latest result is the fourth consecutive year in which the RBF has recorded profit of more than $100 million.
