The Reserve Bank of Fiji (RBF) is the
central bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central b ...
of the
Pacific
The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean (or, depending on definition, to Antarctica) in the south, and is bounded by the contine ...
island
An island (or isle) is an isolated piece of habitat that is surrounded by a dramatically different habitat, such as water. Very small islands such as emergent land features on atolls can be called islets, skerries, cays or keys. An island ...
country
A country is a distinct part of the world, such as a state, nation, or other political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, sovereign state, while ...
of
Fiji. The responsibilities of the RBF include issue of
currency
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.
A more general ...
, control of
money supply
In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circul ...
,
currency exchange,
monetary
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are ...
stability, promotion of sound finances, and fostering
economic development
In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...
.
The Bank is the only institution that is permitted to issue
Fijian dollar
The Fijian dollar (currency sign: FJ$, $; currency code: FJD) has been the currency of Fiji since 1969 and was also the currency between 1867 and 1873. It is normally abbreviated with the dollar sign $, or alternatively FJ$ to distinguish ...
s and put them into circulation. It is also responsible for setting the overnight policy rate, the main policy or
bank rate
Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country, and ...
for Fiji.
History
In 1914 the then colonial Government establishing the Currency Board with the sole right to issue notes and coins in the then Colony of Fiji. After independence from Britain in 1970, a new institution was created in 1973, the ''Central Monetary Authority'' (CMA) which took over the issuing of currency and also took on an expanded remit.
The CMA was tasked with regulating the issue of currency and the supply, availability and international exchange of money; promoting monetary stability; promoting a sound financial structure; and fostering credit and exchange conditions for the economic development of Fiji. It also acted as banker to the government. By the 1980s the government of Fiji wanted to expand its role and Bank of Fiji was created by the Reserve Bank of Fiji Act, 1983.
Statutory responsibilities
The functions, powers, and responsibilities of the Bank were specified in the Reserve Bank of Fiji Act, 1983. The principal purposes of the Bank as stated in Part ll, Section 4 of the Reserve Bank Act were as follows:
*To regulate the issue of currency, and the supply, availability and international exchange of money;
*To promote monetary stability;
*To promote a sound financial structure;
*To foster credit and exchange conditions conducive to the orderly and balanced economic development of the country".
Governors
General Managers of the Central Monetary Authority of Fiji 1973-1983
* 1973-1974:
Ian Craik
Ian or Iain is a name of Scottish Gaelic origin, derived from the Hebrew given name (Yohanan, ') and corresponding to the English name John. The spelling Ian is an Anglicization of the Scottish Gaelic forename ''Iain''. It is a popular name in Sc ...
* 1974-1977:
R J A Earland
* 1977-1980:
H J Tomkins
* 1980-1983:
Savenaca Siwatibau
Governors of the Reserve Bank of Fiji since 1983
* 1983-1988:
Savenaca Siwatibau
* 1988-2000: Ratu
Jone Kubuabola
Ratu Jone Yavala Kubuabola (11 September 1946 – 16 September 2018) was a Fijian politician. He was the country's Minister for Finance from 2000 until the government was deposed in the military coup of 5 December 2006. He also represented the S ...
* 2000-2009:
Savenaca Narube
* 2009-2010:
Sada Reddy
* 2010-2017:
Barry Whiteside
* 2017-:
Faizul Ariff Ali
Departments and functions
The Bank has four main departments – economics, financial markets, financial institutions and currency and corporate services. The key roles of each department are as follows:
Economics
The Economics department's main responsibility is to conduct economic analysis and provide advice on the formulation of monetary policy. Some of the key tasks performed by the department are as follows:
Monitoring economic and financial developments and providing advice on appropriate monetary policy settings in Fiji;
Undertaking research and preparing economic forecasts;
Writing and co-ordinating the Bank's publications; and
Co-ordinating economic policy with relevant authorities.
Financial Markets
The Financial Markets department has the primary responsibility for implementing monetary policy, managing Fiji's foreign reserves and providing banking services to the Government. It also handles foreign exchange regulation and control as well as exchange rates. Its key functions include:
Conducting open market operations to achieve operational monetary policy targets;
Managing Fiji's foreign reserves;
Maintaining appropriate exchange rate arrangements;
Acting as a fiscal agent of the Fiji Government and registrar for debt instruments issued by the Fiji Government. This function has also been extended to a number of statutory corporations;
Providing banking services to Government and commercial banks; and
Administering exchange controls to monitor and regulate capital flows through the banking system.
Financial Institutions
The Financial Institutions department's major objective is to maintain a sound market-based financial system through prudential supervision of licensed financial institutions and the insurance industry. Key areas of duties include:
Regularly reviewing international developments in the area of financial system supervision and payment system structure and their impact on the supervisory arrangements in Fiji;
Supervising licensed financial institutions and maintaining confidence by minimising detriments to the interests of depositors and policyholders;
Processing applications for those wishing to become licensed banks, credit institutions, insurers, brokers and agents; and
Ensuring that prudential policies and guidelines are up to date and that licensed institutions conform to these standard requirements.
Currency and Corporate Services
The Currency and Corporate Services department has primary responsibility for currency issue and internal administration of the Bank, including financial reporting and human resources management. Its key areas of work include:
Ensuring availability and supply of good quality currency;
Ensuring that the Bank has a qualified and trained workforce to meet the output requirements;
Providing support services to other departments in the Bank; and
Ensuring that the financial accounts of the Bank are prepared in a timely manner.
Other activities
The Bank is also active in promoting
financial inclusion
Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and service ...
policy and is a leading member of th
Alliance for Financial Inclusion It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the
Maya Declaration during the 2011
Global Policy Forum The Global Policy Forum (GPF) is an international non-governmental organization founded in December 1993 and based in New York and Bonn (Global Policy Forum Europe). The aim of the Global Policy Forum is to critically accompany and analyze devel ...
held in Mexico.
Reserve Bank of Fiji building
The Reserve Bank of Fiji Building is in
Suva,
Fiji and was Fiji's first skyscraper and the tallest building in Fiji. The fourteen storey building was commissioned in the late 1970s and completed in 1984.
References
External links
Reserve Bank of Fiji official siteReserve bank building data sheet
{{Coord, 18.1396, S, 178.4251, E, source:wikidata, display=title
Government buildings completed in 1984
Fiji
Reserve Bank building
Skyscraper office buildings
Buildings and structures in Suva
1984 establishments in Fiji