The official foreign reserves held by the National Reserve Bank decreased by $0.2 million in July 2004, from $89.7 million to $89.5 million, an amount equivalent to 5.5 months of imports of goods. 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 Foreign Reserve was a healthier state than it was in July 2003, when the Foreign Reserves was $39.1 million, an amount equivalent to 2.5 months of imports.