Our Functions, Vision and Mission
The National Reserve Bank of Tonga (Amendment) Act, 2014, Section 4, sets out the principal objectives of the Bank. It states:
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The principal objectives of the Bank shall be to maintain internal and external monetary stability.
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Without prejudice to its principal objective, the Bank shall -
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promote financial stability, and
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promote a sound and efficient financial system.
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Subject to subsections (1) and (2), the Bank shall conduct its activities in a manner that supports macroeconomic stability and economic growth.
Maintaining internal monetary stability is pursued by the Reserve Bank through promoting low and stable inflation over the medium term. The Reserve Bank's reference inflation rate is to be maintained below 5%.
Maintenance of external monetary stability is pursued through maintaining an adequate amount of foreign currencies (foreign reserves) to meet the country's foreign currency demands to pay for imports and other obligations. As such, the Reserve Bank's monetary policies aim to ensure that Tonga always has foreign reserve holdings of at least three to four months of import cover.
Our Mission
Facilitation of inclusive, sustainable, and resilient development for the benefit of all the people of Tonga.
Our Vision
Ensure sustainable and inclusive development for Tonga.
Our Values
We will pursue our mission with the following values:
We Embrace Christian Values and Integrity.
We embody Christian values in our professional conduct, exercising sound judgment.
Our integrity is our foundation. We commit to doing what is right, matching our actions with our words.
We care deeply about our staff and the people of Tonga. We focus upon their well-being to do better for the Kingdom.
We are One Team, Embracing Excellence.
We work together as a team to become a more effective central bank.
We deliver quality by working together, seeking diverse perspectives, and focusing upon disciplined implementation.
We believe in our role as an independent central bank.
We are transparent, accountable, and connected to all aspects of Tongan national policy.
We Work to Improve Performance and to Innovate.
We continuously seek improvement, fostering innovation in all that we do.
We Work with Respect and Humility, Aligned with the National Culture of Tonga.
We value honesty, conviction, humility, and respect in all our interactions.
We fearlessly confront difficult questions, remaining open to listening, adapting, and learning as we progress towards our goals.
Our Functions
The National Reserve Bank Act, Section 4A, also sets out the Reserve Bank's functions:
"The principal functions of the Bank shall be, to:
- issue currency;
- formulate and implement monetary policy;
- prescribe the regime for the determination of the external value of the Tongan currency in consultation with the Minister;
- determine the foreign exchange rate and implement foreign exchange policy;
- determine and implement financial stability policy, and oversee the maintenance of the stability of the financial system as a whole;
- regulate as required the supply, availability and international exchange of money;
- exclusively hold and manage the external reserves of the Kingdom;
- provide advisory services to the Minister on banking and monetary matters;
- be the principal banker, fiscal agent and depository of the Government;
- undertake banking business, in Tonga or elsewhere, subject to the provisions of this Act;
- regulate and supervise financial institutions, including non-bank financial institutions;
- oversee and promote the efficient, sound and safe functioning of the payment system;
- collect and produce statistics;
- cooperate with and participate in international councils and organisations, including public international financial institutions, and cooperate with domestic and foreign public entities, concerning matters related to its objectives and functions;
- regulate and supervise capital markets in Tonga; and
- to manage and promote financial inclusion initiatives and related activities; and
- carry out any other function or any ancillary activities incidental to the exercise of its functions under this Act or any other Act.
The National Reserve Bank of Tonga (Reserve Bank) was established on 1 July 1989 as the central bank of Tonga.