Tonga’s official foreign reserves reached US$871.5 million at the end of May 2025, rebounding by US$4 million. The increase was supported by budget support inflows, official grants and remittances.
The May balance covers 10.0 months of imports, well above the International Monetary Fund’s recommended minimum buffer of 7.5 months, strengthening Tonga’s external stability.
Despite this recent uptick, reserves have contracted by US$21.5 million compared with May 2024, reflecting a broader downward trend over the year. In April, reserves had risen sharply by US$25 million, primarily drawn from budget support, before stabilising at US$867.6 million .
The National Reserve Bank of Tonga credits ongoing budget assistance and sustained remittance flows for halting further declines. Financial analysts say this stabilisation allows Tonga to retain a solid cushion against external shocks and volatility in trade earnings.
However, they note that maintaining the current import cover, well above the IMF’s minimum, is essential amid global economic uncertainty. Tonga’s capacity to repay its IMF obligations also remains under close scrutiny; as of 31 May 2025, its outstanding IMF credit stood at approximately SDR 13.8 million.
