The National Reserve Bank of Tonga wishes to assure the public that despite the revocation of the banking licence of Pacific International Commercial Bank (PICB) effective from 26th July 2016, the banking system remains sound.

The Governor of the National Reserve Bank of Tonga (NRBT), Dr. Sione Ngongo Kioa presented to the Members of Parliament (MPs) on 10th June, 2016 an update on the economy including the latest monetary and financial indicators. The monetary policy stance, policy actions by the NRBT and other issues were also discussed.

The Governor Dr Sione Ngongo Kioa announced that the Reserve Bank has completed its annual review of the Exchange Control Policy Guidelines which was approved by the Reserve Bank’s Board of Directors on 31st May 2016. The revisions were based on consultations with the Ministry of Revenue and Customs, banks and authorised foreign exchange dealers and other members of the public.

Effective on 1st July 2016 all banks must work towards progressively achieving a minimum loan/deposit ratio of 80% and a maximum loan to deposit ratio of 90% within 18 months of the effective date.

At its meeting today, the National Reserve Bank of Tonga (NRBT) Board approved the release of its Monetary Policy Statement (MPS) for February 2016. This Statement reviews Tonga’s economic growth and the NRBT’s conduct of monetary policy in the six months to February 2016. It also provides the NRBT’s outlook for the next six months.

The public is hereby reminded that the Foreign Exchange Control (Restriction on Removal of Cash) Regulations 2009 assigns the authority over removal of cash exceeding T$10,000 pa’anga or cash in currency of any country or countries in any combination that exceeds the value of T$10,000 pa’anga to the Governor of the National Reserve Bank of Tonga.

The amendment of the National Reserve Bank of Tonga Act in 2014 gave the National Reserve Bank of Tonga the power to regulate and supervise all financial institutions operating in Tonga, including both banks and non-bank financial institutions.

It has been brought to the attention of the National Reserve Bank of Tonga that customers of banks in Tonga have been affected by the fraudulent activities in Fiji which involved obtaining customers’ bank card details using ATM and EFTPOS skimming devices.

The IMF annual Article IV Mission 2016, led by Elena Louikoianova, will be conducted from 29th February to 11th March 2016. The mission is to assess Tonga’s economic and financial policies and to provide advise on key policy recommendations to improve Tonga’s financial and economic policies ...

The National Reserve Bank of Tonga has received a $20 pa’anga of the new designed ‘King Tupou VI banknote series’ and confirmed to be a counterfeit. The Public is urged to report any counterfeit banknotes to the Reserve Bank. Makers and distributors of counterfeits are breaching Section 59 and 61 of the Criminal Offences Act 1988.