The Reserve Bank of Fiji (RBF) is the country’s central bank.
Under Section 4(b) of the RBF Act (1983), the Bank is required to promote monetary stability through low and stable inflation and to maintain an adequate level of foreign reserves. The Bank performs this responsibility through the formulation and implementation of monetary policy. Policy tools include the Overnight Policy Rate (OPR), open market operations (OMO), statutory reserve deposits, and other direct and indirect controls which have been used at various times.
In managing the country’s foreign reserves, the Reserve Bank also utilises and administers exchange control policies under the Exchange Control Act (Rev. 1985).
Under Section 4(c), the RBF Act requires the Bank to promote a sound financial structure. In undertaking this function, the Bank monitors and takes actions to mitigate against financial system risks, and licenses and supervises institutions in the banking, insurance and superannuation industries, as well as foreign exchange dealers.