The director of Banking Services Division, Noemie Louise, has shared the highlights of the Financial statement for the year ending December 31, 2021.
The audited financial statements of the Central Bank of Seychelles for the year ending December 31, 2021 has been approved and signed by the Board on March 28, 2022.
These financial statements have been prepared in accordance with the CBS Act, 2004, as amended, and are in line with the International Financial Reporting Standards (IFRS). They comprise the following statements, consistent with prior years; (i) the statement of financial position, (ii) the statement of profit or loss and other comprehensive income, (iii) the statement of changes in equity, (iv) the statement of cash flows, (v) the statement of distribution in accordance with the CBS Act, 2004, as amended, (vi) and the notes to the financial statements. These financial statements of 2021 have been audited by external auditors, Deloitte Touche Tohmatsu Limited (Deloitte & Touche) from South Africa on behalf of the Auditor General as per Section 47(3) of the CBS Act, 2004. The external auditors have completed their fourth year of appointment and are eligible for reappointment as the CBS’ external auditors subject to annual review.
As of 2021, total assets stood at R12,131 million, total liabilities was R10,919 million and total equity stood at R1,212 million. The figures show a decrease of 12 per cent in total assets, 12 per cent increase in total liabilities and 69 per cent decrease in equity compared to the previous year. Total value of foreign currency denominated assets decreased in Rupee terms from R12,153 million, equivalent to USD559 million as at the end of 2020 to R10,368 million, equivalent to USD705 million as at the end of 2021, which is a decrease of 15 per cent in Rupee terms but represents an increase of USD146 million. With respect to the exchange rates component, it is important to note that despite the pandemic situation, the SCR appreciated significantly against the USD from USD1=SCR21.62 as at December 2020 to USD1=SCR14.70 as at December 2021.
Summary of management’s commentary on the profit or loss & other comprehensive income
The statement of profit or loss and other comprehensive income shows a total comprehensive income of negative R2,728 million for the year 2021. The primary contributor to net revenue of R170 million was income earned as Interest Income amounting to R102 million. To note Total monetary liabilities increased from R7,127 million in 2020 to R7,406 million in 2021.
Summary of management’s commentary on the statement of distribution
The total distributable earnings for the year 2021 was a negative R63 million. As per Section 16(3) of the CBS Act: Where the distributable earnings of the Bank is less than zero, they shall be offset against the General Reserve. As a result of the negative distributable earnings at the end of 2021, the General Reserves decreased from 2.07 per cent of the monetary liabilities to 1.22 per cent. Authorised capital stood at 2.04 per cent. No distributable earnings was paid into the Government Consolidated Fund as dividends for the year.
International reserves management report 2021
The report was presented by the Financial & Risk Analyst Ron Bonne.
CBS has to ensure that there is an adequate level of reserves to meet a range of macro-economic objectives:
– Repayment of public debt in foreign exchange
– Payment of other foreign exchange obligations – Government, Agencies and SOEs.
– Support for domestic macro-economic policies
– Support the foreign exchange policy. Protection in the event of balance of payments shock or disasters
CBS invests the reserves with the objectives of capital preservation, liquidity and return generation. These objectives more often diverge; total reserves are broken down into portfolios called tranches, to meet one or two separate objectives at a time.
Being a small developing economy Seychelles was not spared the overwhelming effects of the pandemic and the ensuing economic uncertainties.
Reserves remain predominantly in USD as it is considered a safe haven currency amid the ongoing pandemic.
Income on the currency remained low.
Geopolitical tensions between US and China, Brexit and ECB actions posed challenges for return generation.
Ongoing efforts to diversify the reserves will continue, he noted.
Source: Seychelles Nation
