Tonga’s foreign reserves record increase

Tonga’s Foreign Reserve increased significantly in August 2021 by $46.9 million to $751.7 million.

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.

Following a meeting of the NRBT Board of Directors on 8 September 2021, the Governor, Dr Sione Ngongo Kioa, stated that the Board approved for the NRBT to maintain its current monetary policy, to encourage the utilization of the excess liquidity in the banking system by further lending to growth sectors and supporting the economy from the impacts of COVID-19.