Chairman of the Reserve Bank Board Lord Sevele presented the cheque and proudly shared:
"This year’s audited financial statement of the Bank confirmed a historical net profit of $20.4 million, a substantial improvement from the previous year's profit of $0.5 million, and the best-ever in the history of the Bank. The $14.2 million therefrom represents the annual distribution of 70% of the net profit to His Majesty’s Government for the financial year ended 30th June 2023. Our stellar performance in 2023 reflects increased interest rates earned on our foreign reserves and changes to our investment strategy – increasing our investment levels, choosing longer term maturity, and more-focused evolving currency composition, closely monitored during the year.”
Reserve Bank Chairman, Lord Sevele presenting the profit distribution to Acting Prime Minister Hon. Samiu Vaipulu in the presence of Minister for Finance Hon. Tiofilusi Tieeti and Board Directors, Friday 15 September 2023, NRBT Board Room.
During the year, the Bank had a comprehensive focus on promoting price stability, financial stability, and bolstering foreign reserves to shape the nation's economic future. The Bank's responsibilities ensuring the stability of the financial system, safeguarding our pegged exchange rate for macroeconomic stability, and managing local and foreign currency supplies have been reasonably successful despite world-wide difficulties of rising prices, supply bottlenecks.
One objective area in which the Bank’s efforts have not produced all the desired results is that of taming inflation, a situation that it shares in common with most of the central banks in Australasia. There is increasing evidence that the interest channel of the monetary policy is too blunt an instrument for the Tongan economy. The coherence of the Government fiscal policies will need to be improved where they have direct contributions to families cost of living. As shared in the region, controlling inflation and the rising costs of living are tasks the Reserve Bank cannot achieve on its own, but needs Government wide action to assist control the costs of living. This joint responsibility is one of the objectives that the Board will focus on from now on.
Looking to the short to medium term, 2023 marks the dawn of a Five Year Board Strategy that begins with a Review of the Bank’s Act to allow revisit its effectiveness in promoting stronger economic growth to mitigate the weak prospect identified by the 2023 IMF Article IV concluding statement. The Bank believe that the potential for greater and faster economic growth is there - ready for Tonga to exploit: but it needs pragmatic vision, planning and coordinated actions. Lord Sevele extended his appreciation for the Bank's independence and its close partnership with the Ministry of Finance, government institutions, the four banks in Tonga, the two retirement funds, the International Monetary Fund (IMF), and the international and bilateral Development Partners.
In closing, Lord Sevele gratefully acknowledged the effective and efficient leadership of the Governor, Tatafu Moeaki, his executive management team and all the hard working staff of the Bank, and also thanked his fellow Directors for their expert advice and constant support.
Na’e tokoni lahi ‘a e Pangikē Pule Fakafonua ‘a Tongaˊ ki he Pule’anga ‘I hono foaki atu ‘a e sieke pa’anga ‘e $14.2 miliona ki he Palemia Le’ole’oˊ Hon. Samiu Vaipulu pea mo e Minisitā Pa’anga Hon. Tiofilusi Tiueti he’enau Fakataha Lahi Fakata’u ‘o e 2023, na’e fakahoko he ‘aho Falaite 15 Sepitema. Na’e me’a ai ‘a Lord Sevele:
“Na’e fakapapau‘i hono ‘atita tau’ataina ‘a e fakamatala pa‘anga fakata‘u ‘a e Pangikē Pule´ ki he ta’u ngata ki he ‘aho 30 Sune 2023 ha tupu fakapa‘anga fakahisitolia ko e $20.4 miliona, ko e hiki lahi eni mei´he tupu $0.5 miliona ‘o e ta‘u kuo hili´. Ko e tupu lelei taha eni ‘i he hisitolia ‘o e Pangikee´ Pule pea ko e $14.2 miliona, ko e ‘inasi pēseti 70 ‘o e tupu ‘oku foaki ki he Pule’anga ‘a ‘Ene ‘Afio´. Ko e ola mā‘ongo‘onga ko eni ‘oku ho‘ata ai ‘a e fakahoko fatongia pea mo e tataki lelei ki he ngaahi ma’u’anga pa’anga ‘a e Pangike, hikihiki ‘a e totongi tupu mei´he pa’anga ‘inivesi ‘i muli´, kake‘i e ngaahi koloa fakatupu pa‘anga´ taimi loloa´, pea mo e fakalelei ‘a e fa‘unga fakapa‘anga´ na’e muimui’i ofi lolotonga e ta’u 2023.”
‘I he lolotonga ‘o e ta’u´, na’e toe tokanga lahi 'a e Pangikē ki he holo mo e tokamalie hikihiki he totongi koloa΄, lahi fe’unga ma’u’anga pa‘anga΄, pea mo tatanaki ki he lahi ‘o e pa’anga talifaki muli ‘a e fonua΄ ke poupou ki he langa faka‘ekonōmika. Na’e ola lelei ‘a e ngaahi fatongia ‘o e Pangikē ki he maau ‘a e tafa’aki fakapa’anga, malu’i ‘a e mahu‘inga ‘o e pa‘anga Tonga΄, pea mo hono tokanga’i ‘a e pa’anga fakalotofonua moia ‘i muli΄. Na’e lava lelei eni neongo ‘a e ngaahi faingata’a fakamāmani lahi ‘o e hikihiki ‘i he totongi koloa´ pea mo e pole lahi ki hono fakatau mai moe fakatau atu ‘o e ngaahi koloa´.
Ko e taha ‘o e fatongia ‘o e Pangikee´ ne faingata’a ke a’usia pea fiema’u vivili, ko hono holoki ‘a e hikihiki ‘i he totongi koloa´, ‘a ia ‘oku faingata’a’ia tatau ai mo e ngaahi pangikē pule ‘o e ngaahi fonua ‘i ‘Aositolo’esia. Kuo ‘asi mai ha ngaahi faka’ilonga he ngaahi ta’u kuo maliu atu ‘oku ‘ikai ke ngāue lelei ‘a e feliliuaki ki he hiki e totongi tupu´ ki he noo pea mo e inivesi ke fakatautau’aki e tupu faka’ekonomika. ‘Oku fu’u fiema’u leva ke ‘ngaue vaofi e sekitoa ki he ma’u’anga pa’anga pea mo e fokotu’utu’u ngāue ‘a e Pule’anga´ ki hono tauhi ke ma’ama’a e totongi mo e fakamole faka’aho ‘a e kakai ‘o e fonua´. ‘O hangē koia ‘oku hoko ‘i he ngaahi fonua kehe´, pea mo mahu’inga ki he fakalukufua, ‘oku faingata’a ange ki he Pangikē Pule´ tokotaha pē ke ta’ota’ofi ‘a e hikihiki ‘i he totongi koloa´ mo e fakamole faka’aho ‘a e kakai. Ko ia ai ‘oku fiema’u mo e tokoni ‘a e ngaahi kupu kotoa ‘o e Pule’anga ke fengaue’aki fakataha pea moe Pangike Pule ke ngaue lelei ange ki he fakalukufua. Ko e fengāue’aki fakataha ko eni´, ‘oku hoko ia ko e taha ‘o e ngaahi taumu’a ‘e tokanga kiai ‘a e Poate´ he lolotonga ni ki he kaha’u vave mai.
‘I he sio atu ki he kaha’u taimi nounou´, ‘oku hoko ‘a e 2023 ko e kamata’anga ia ‘o e Fokotu’utu’u Ngāue Ta’u Nima ‘a e Poate´ ‘e kamata ‘aki ‘a hono toe vakai’i ‘a e Lao ‘o e Pangikee´ ke faingofua ange ‘a hono faka’ai’ai ke toe lelei ange moe longomo’ui ‘a e tupu faka’ekonomika koe’uhi koe ngalingali matavaivai hange ko hono ‘ohake ‘i he Lipooti ‘a e Kautaha Pa’anga Fakavaha’a Pule’anga (IMF) he’enau vakai’I tau’ataina e ‘ekonomika ‘o Tonga he 2023. ‘Oku tui ‘a e Pangikee´ ‘oku lahi pē faingamalie ke toe malohi mo vave ange tupu faka’ekonomika ‘a Tonga– ‘aia ‘oku totonu ketau faka’aonga’i kaa, ‘oku fiema’u ke ngāue vaofi mo sio loloa, ngaahi fokotu’utu’u ngaue lelei pea mo ngaue fakataha´. Na‘e fakamālō‘ia ‘e Lord Sevele ‘o Vailahi ‘a e tau’ataaina ‘a e Pangikē Pule pea mo ‘ene fengāue‘aki fakataha pea mo e Potungāue Pa‘anga, ngaahi kupu ngaue ‘a e Pule‘anga΄, pangikē ‘e fā ‘i Tonga΄ni, ongo kautaha sino’i pa‘anga mālōlō, Kautaha Pa‘anga Fakavaha‘apule‘anga (IMF), pea mo e ngaahi fonua hoa ngāue fakalakalaka΄.
Faka’osi´, na‘e fakamālō‘ia ‘e Lord Sevele ‘o Vailahi ‘a e tataki ne fakahoko ‘e he Kōvana Tatafu Moeaki mo ‘ene kau taki ngāue, pea mo e toenga ‘o e kau ngāue ‘o e Pangikē, kae ‘uma’a ‘a e kau kaunga Talekita´ ki he’enau tokoni fakataukei mo e ngaahi poupou.
