Central Bank of Seychelles earned more than SCR20millon profit in 2015
The Central Bank of Seychelles (CBS) has said it recorded a profit of SCR 20.5 million last year, in comparison to SCR1.3 million earned the previous year.
Governor Caroline Abel told members of the media the overwhelming difference is a common occurrence for the bank, especially since it is putting away money in reserve.
She said other factors, for example tightening up liquidity to ensure continued stability in the financial sector, also impacted its operation considerably in 2014 as opposed to last year when the rupee gained on the dollar allowing CBS to loosen its monetary policy in the latter stages of the year.
Despite the constraints, CBS was able to put away US$86 million last year she said, bringing the country’s reserve to US$536 million at the end of the 2015 fiscal year, from US$464 million the year before.
Generally speaking the bank and the financial sector over performed last year Miss Abel explained noting that a profit for CBS gives confidence to stakeholders in the sector.
She was speaking while presenting CBS’ annual financial report to members of the local media in a special presentation at CBS’ premises.
She said the presentation was meant to open up the bank to the scrutiny of the public so that its dealings are perceived to be more transparent in the future.
Asked then why CBS recently decided to tighten up monetary policy if the financial sector over performed last year, she said tightening up the financial sector is in a sort taking measures to ensure inflation does not become excessive.
Inflation stood at 3.2 percent last year she revealed, but despite it being on the low side throughout the whole of last year, Miss Abel said measures are taken by the bank whenever the acceptable ceiling of 5 percent is threatened.
She said recent developments to award a thirteenth month salary, and exemption on tax for a sector of the workforce, as announced by the government, has caused an important increase in the number of rupees in circulation, which could drive up prices.
“A trend is already showing that more foreign exchange has been purchased from banks during the first quarter of the year, signaling not only an increase in purchase power, but also a rise in prices and eventually that money may leave the country”, stressed the governor.
She said the stability of the rupee and the financial sector overwrites monetary policies which may weaken the rupee and cause inflation to rise.
“Inflation level stands at 3.6 percent for the first quarter of 2016, and all indication is that the prices of goods will continue to go up in the coming months, explained Miss Abel, who was responding to questions as to why fiscal policies have been tightened up yet again.
Other important figures released by the bank at the presentation pertained to economic growth which stood at 4.3 percent during 2015, coming down from 6.2 percent the previous year.
The IT section recorded the most growth, expanding by 94 percent last year, journalists learned. The external debt of the country stood at $894 million, or 60 percent of its Gross Domestic Product (GDP).
Source: Today.sc 4-8-16