Litia Cava 
RBF Governor Ariff Ali and Finance Minister Esrom Immanuel at today’s profit transfer.[PHOTO: LITIA CAVA]
The Reserve Bank of Fiji will transfer more than $117 million to the government.
RBF Governor Ariff Ali says the transfer is slightly more than 10 percent of the RBF’s profit.
He states the figure is also close to the amount the Government had estimated in the national budget.
The transfer comes after the RBF recorded its fourth consecutive year of profit.
Ali says the Bank’s profit for the year was below $550 million.
The Governor says the RBF’s earnings are largely driven by interest income.
About 75 percent of its income comes from foreign investments, while roughly a quarter comes from domestic interest income.
Ali says the strong profit was supported by higher interest rates in international markets.
But that environment is now changing.
He says interest rates are falling in some of the markets where the RBF invests its foreign reserves.
That is expected to put pressure on the Bank’s investment income.
Ali says the RBF had at one stage projected a profit of close to $100 million.
Higher interest rates later allowed the Bank to increase its profit.
Ali says profit is not the RBF’s primary purpose.
However, he says strong financial results are important for maintaining the credibility of the institution and demonstrating that its finances are being managed properly.
The $117,975,891.51million dollar transfer will form part of government revenue, following another profitable year for the country’s central bank.
