Washington [US], September 20: The Reserve Bank of Fiji states that depositors and policyholders can be assured that their money remains safe.
Public Finance
Thus, it warns that lower global interest rates will put pressure on its investment income and profits.
RBF Governor Ariff Ali said the central bank was closely monitoring risks across Fiji's financial system and has found no major concerns.
He stated this covers commercial banks, FNPF and insurance companies, despite risks including credit, operational and cyber security threats.
"And as I said earlier, I can assure you that as of today, we are closely monitoring and we don't see anything of major concern. So, basically, your money at the banks is safe."
Ali explained that about three-quarters of the RBF's income comes from interest earned on foreign reserves, meaning lower interest rates in major markets will affect its earnings.
The RBF recorded just over $120 million in profit for the financial year, its fourth consecutive year above $100 million.
But Ali states that profits are expected to be slightly lower in the new financial year.
Over the past five years, the RBF has transferred just under $550 million in profits to the government .
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Ali points out that RBF's role is not to make profits, but strong financial results help maintain the institution's credibility and demonstrate that it is managing its finances well.
He adds that Fiji's financial system remains resilient, with total assets of almost $40 billion and foreign reserves at about $3.9 billion.
Inflation, however, remains a concern at 7.6 per cent, driven largely by global factors including fuel prices and their flow-on effects on transport and electricity costs.
Source: Fijian Broadcasting Cooperation
