2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru

Abstract

2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Nauru

Fund Relations

(As of December, 2019)

Membership Status: joined April 12, 2016; Article VIII

General Resources Account:

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SDR Department:

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Outstanding Purchases and Loans: None

Financial Arrangements: None

Projected Payments to Fund

(SDR Million; based on existing use of resources and present holdings of SDR):

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Exchange Arrangements

The dejure and defacto exchange rate arrangements are classified as no separate legal tender. Nauru’s legal tender is the Australian dollar. There is no central monetary institution. Nauru has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.

Technical Assistance

Nauru has been benefitting from the Pacific Financial Technical Assistance Centre’s (PFTAC) technical assistance (TA) in recent years with the largest concentration in the public financial management (PFM) sector. Technical assistance provided by PFTAC has assisted with the introduction of a Revenue Administration Act and an Employment and Services Tax Act, both of which became effective from October 1, 2014. Further legal TA, by way of PFTAC funding, facilitated the introduction of a Business Tax Act (BTA). The new BTA imposes a business profits tax, small business tax, non-residents tax, and an international transportation business tax. Methodologies for producing more comprehensive and timely national income and balance of payments statistics have also been developed.

Resident Representative:

The Regional Resident Representative Office for Pacific Islands is based in Suva, Fiji and was opened on September 13, 2010. The office covers Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu. Ms. Leni Hunter is the current resident representative.

Relations with Other International Financial Institutions (IFIS)

Information on the activities of other institutions in Nauru can be found at:

Statistical Issues

Nauru: Table of Common Indicators Required for Surveillance

As of December, 2019

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Nauru: Table of Common Indicators Required for Surveillance (As of December, 2019)

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Nauru uses the Australian dollar as its legal tender.

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) a state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).