The Reserve Bank of Vanuatu (RBV) has implemented a new currency exchange rate framework, following an independent assessment by the International Monetary Fund (IMF). This change aims to realign the Vatu with Vanuatu's current trade patterns, which have shifted significantly over the years. The RBV confirms that this adjustment is not a devaluation of the currency but rather a realignment to reflect the country's economic reality.

The change is expected to make Vanuatu more attractive to tourists and investors, potentially boosting economic growth and increasing foreign investment. The RBV has taken into account the potential implications of this change, including slightly higher import costs and increased government loan repayments.

However, the Bank is confident that these effects will be manageable and that the overall benefits of the change will outweigh the costs. "We believe that this change will support Vanuatu's economic development and help to promote inclusive and sustainable growth," said the RBV Governor. "We welcome more investors and visitors to Vanuatu and are confident that our economy will continue to thrive in the years to come."

The RBV will continue to monitor the effects of this change and make adjustments as necessary to ensure the stability and growth of the Vanuatu economy.

Port Vila, October 3^rd 2025, Vanuatu – Prime Minister Jotham Napat apologized on behalf of past governments today to more than 400 teachers at Saralana Park on behalf of the Government before delivering his address to mark the World International Teachers Day. The emotional moment brought tears to many teachers who later met him to offer their sincere gratitude for saying “sorry” at an opportune time, as they finally felt heard and recognized after years of trying to get the authorities to listen.

 In a significant gesture, Prime Minister Napat spoke directly to the teachers' concerns, while acknowledging their prolonged suffering for almost 20 years. He expressed deep regret for the government's inaction, partly because of a lack of leadership at all levels and proper planning and resourcing at the Teaching Services Commission and the Ministry of Education levels. "We understand that this issue has lingered for far too long, and for that, we are truly sorry. We commit to doing better and ensuring that our educators are treated with the respect and fairness they deserve," he said.

 Prior to the Prime Minister’s address, Minister for Finance, Johnny Koanapo, provided clarifications and assurances that the government remains committed to sorting out all verified teachers' claims. "We are dedicated to resolving this matter in a fair and transparent manner. Our priority is to ensure that all legitimate claims are addressed, and we will work diligently to achieve this. He made it clear that the funds allocated are available to begin sorting out the remainder of the outstanding claims once the current verification processes are completed.

 Chairman of the Government’s CBA Taskforce appointed by the Prime Minister, Benjamin Shing provided some useful background and context for the long delay – highlighting disparities in the records and data held by the Ministry of Education, the Teaching Services Commission and the Vanuatu Teachers Union, which needs a lot harmonizing over the next week or so.

 He also pointed out that there is an immediate need for reforming and strengthening the capacity of the Teaching Service Commission (TSC).

 "The TSC, responsible for over 4,000 teachers, operates with only 10 staff, compared to the Public Service Commission, which has over 200 staff for less than 2,000 employees. This disparity contributed significantly to the challenges we face today," the First PA of the Deputy Prime Minister and Chairman of the Taskforce said.

 With the verification process set to begin on Monday, October 6 2025, the Government and all parties involved are optimistic about resolving the matter within the next week or so before the strikers can return to class.

 Meanwhile, Secretary General of the Vanuatu Teachers Union (VTU) Jonathan Yona, expressed his deep appreciation to the Government for its strong commitment, even when at times they dragged their feet out of frustration and anger.

 The government appreciates the patience and understanding of the teachers and is committed to working collaboratively towards a fair and sustainable solution.