The Reserve Bank’s unwavering commitment to prudent monetary policies is proudly reflected on financial year 20231 as a year of resounding success in maintaining price and financial stability. Our financial performance in 2023 reveals commendable growth in various aspects, underscored by increasing our investable assets, increasing longer term maturity and changing composition of currency proved effective during the year. Our daily management of the exchange rate was assessed appropriate by the IMF as the independent international agency.

Our approach was underpinned by the development of a renewed 5-year strategy to start from the second half of 2023 and reviewing the principal Act to improve prudent economic management, and promote transparent communication and collaborative partnerships. Consequently, the Reserve Bank can chart stronger financial opportunities and a course of prosperity that benefits every individual and upholds the honour of Tonga's economic legacy. We maintained a steadfast commitment to open communication and transparency through dialogue with the four (4) banks and the Association of Banks in Tonga (ABT), a roundtable with the two retirement funds, seventeen foreign exchange dealers, money lenders, and other financial institutions. We collected and analysed data, and published updates on economic indicators, policy decisions, and future projections to assist predictability and enable the public, businesses the Government and stakeholders to make informed choices. This, in turn, promoted stability in financial markets and nurtured an atmosphere of trust in the financial sector.

The financial performance recording $20.4 million net profit in 2023 reveals commendable growth in various aspects of NRBT underscored by prudent financial management and effective policies. Our ability to navigate through economic challenges and capitalize on opportunities reflects the strengthened leadership of the Reserve Bank with stronger business acumens.

We partnered closely with the Ministry of Finance and Government bodies, financial institutions, Pacific central banks and Governors, International Monetary Fund (IMF), Alliance for Financial Inclusion (AFI) and international organizations to ensure a unified response to economic challenges. By coordinating efforts and sharing insights, we enhanced the effectiveness of our policies and achieved results that exceeded expectations.

The Reserve Bank's achievements translated into tangible improvements in the lives of every Tongan citizen here and abroad who remit money from time to time to their relatives. Families enjoyed shielded purchasing power from reduced inflation, entrepreneurs found a conducive environment for business expansion with annual credit growth of over 8% driven by businesses.

With an eye towards the future, we commit to ensuring financial stability remains resolute, and that our successes in 2023 continue to resonate in the next year and onwards for the betterment of the Kingdom and its people.

Governor Tatafu Moeaki