Tonga Reserve Bank

The National Reserve Bank of Tonga said the reserve is equivalent to 13.1 months of imports.

The NRBT reported that the increase in the foreign reserves resulted from an increase in Tonga’s Special Drawing Rights allocations from the International Monetary Fund and from remittances.

Foreign reserves also increased substantially over the year by $195.6 million, underpinned by receipts of budget support, project funds, and remittances.

The bank said it was compelled to issue a release after social media posts and mainstream media said bitcoin could become legal tender.

The statement followed a splurge in public discourse over the merits of bitcoin by the Niuas Noble's Representative Lord Fusitu'a.

The release said anyone who offered investments in crypto-assets such as bitcoin in Tonga would need a licence, and no licence had been issued to any business for this.

The Governor of the Reserve Bank, Ngongo Kioa, told Matangi Tonga the Pacific International Commercial Bank failed to honour a business plan, and had not submitted an audit report.

In the unprecedented move, the Reserve said the bank had not honoured its promise to provide a niche product that would bring $100 million US dollars into the country for the purpose of loans.

Dr Kioa said there were warnings issued in 2014 and the bank received a final warning 14 months ago.

RNZ reports the Reserve Bank has not given any reason for the action it has taken but there have been attempts over the past six months to force Pacific International into liquidation.

The Chinese/Tongan venture was started in 2014.