Tonga's Foreign Reserve hits high point [1]
Saturday, July 24, 2004 - 16:48. Updated on Sunday, May 11, 2014 - 11:12.
The official Foreign Reserve held by the National Reserve Bank of Tonga increased by $25.8 million pa'anga in June 2004 to $89.7 million, an amount equivalent to 5.2 months of imports of goods.
The Reserve movements result from the foreign exchange operations that the National Reserve Bank carries out with the commercial banks and with the Government of Tonga. The significant increase in the official foreign reserves for June 2004 was mainly due to the purchase of TOP$25.3 million from one of the commercial banks. It is expected that part of this foreign exchange will be used for repayment of foreign currency liabilities of commercial banks and therefore the official foreign reserves is expected to fall accordingly.
It is not known when the Foreign Reserve was ever this high, but it is expected to be a short-term effect