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Foreign reserves rose more than a milllion pa’anga in July

Radio & TV Tonga, Nuku’alofa, 10/10/2017

 

The National Reserve Bank of Tonga has recorded that Tonga’s foreign reserves rose by 1.1 million pa’anga to 408.9 million pa’anga in July 2017 due to a surplus in the overall overseas exchange transaction balance.

 

This is equivalent to more than 7 months of import cover.

 

The annual inflation showed 7 percent in July from a high of 10 percent in the previous month with the highest level since September 2013.

 

The decline over the month largely reflected the wind down of the hike in prices last year when the new excise tax became effective in July 2016.

 

The imported prices rose by 7 percent over the year contributing 4 percent to the annual headline inflation.

 

The domestic annual inflation rate rose by almost 7 percent driven by the seasonality of local food, rise in electricity price tariff and the continued short supply of Tongan kava roots.

 

© Radio and Television Tonga News