The Reserve Bank’s mandate requires diligence, foresight, and adaptability in navigating both global and domestic challenges. We proudly marked the Bank’s 35th anniversary of service to the Kingdom of Tonga during the financial year 2025, a milestone that coincided with another year of strong performance and resilience.

Performance Delivery: Out of 68 planned outputs, 87% were delivered including those outputs in progress towards achievement1 and the remainder were offset by additional unplanned but critical tasks. They include deeper reviews of monetary policy effectiveness, banking and foreign exchange dealers’ supervision and enforcements, litigation matters, and strengthened reporting and accountability to the Board of Directors.

Price Stability: Inflation was reduced from 8% average in 2024 to 3% in 2025, well below our 5% reference rate, through prudent monetary policy measures, the issuance of two Monetary Policy Statements, amendments to the NRBT Act, and enhanced economic analysis to guide policy relevance.

Financial System Stability: Credit to the private sector grew by 23% in 2025, up from 2% in the previous year. We also advanced measures to safeguard Tonga from money laundering risks, protect correspondent
banking relationships, and address financial deepening challenges.

Financial position continued to strengthen during the year with its net worth increased to $51.7 million end of June 2025, up from $42.8 million in 2024, increasing its capital base to implement monetary policy measures, when necessary to safeguard price stability and protect public interest.

Risks to the Bank are managed through both our Risk and Compliance, and Internal Audit Departments and the collegial management of executive decisions.

Several reforms were advanced during the year to strengthen its effectiveness including the review of our 6-monthly monetary policy, liquidity management, currency management improvements, development of National Payment Services, reserves investment strategy, strengthened risk management and compliance framework, transition to paperless performance systems, and delivering greater efficiency. The Bank’s anniversary celebrations recognized the dedication of our staff and reinforced our commitment to capacity building, technology adoption, and streamlined processes.

These achievements were possible through the oversight and leadership of our Chairman and Board of Directors, with strong support from the Government of Tonga, the Ministry of Finance, and our international central banking partners. Together, we strengthened the foundations of monetary and financial stability, while positioning the National Reserve Bank of Tonga to better serve the Kingdom in the years ahead.

Governor Tatafu Moeaki