07th April, 2017 The National Reserve Bank of Tonga (Amendment) Act 2017 came into effect on Tuesday 4th April 2017.
Two sections of the principal act (National Reserve Bank of Tonga ACT (Cap. 102), Section 4A and Section 33 were amended.
A new paragraph was added to Section 4A of the Principal Act which announced that one of the bank’s principal roles shall be to manage and promote financial inclusion initiatives and related activities.
A new subsection was also inserted to the Revaluation Reserve Account (RRA) in Section 33 of the Principal Act which provides for the Revaluation Reserve Account (RRA) where the Reserve Bank can use any remaining credit in the RRA for the costs of implementing the monetary policy or paid to the Government of Tonga upon request from the Minister for Finance in writing to the Reserve Bank. Requesting of such payment from the Minister for Finance shall be approved subject to market conditions at the time of the request. Any such payments from the RRA are subject to the approval of the Reserve Bank Board and provided that a minimum balance of $10,000,000 is maintained in the RRA.
The Act received Royal Assent from the King of Tonga on the 30th March, 2017 and was published in the Tonga Government Gazette Extraordinary on April 4, 2017.
ENDS
Issued by the: Ministry of Meteorology Energy, Information, Disaster Management, Environment, Climate Change and Communications
