RBA to get $8.8 billion from government October 23, 2013 - 10:07AM The federal government is giving the Reserve Bank of Australia $8.8 billion to strengthen its ability to implement monetary policy and foreign exchange operations. Treasurer Joe Hockey on Wednesday said the one-off grant would help the central bank perform its core functions in a volatile economic environment. Mr Hockey said the RBA's reserve fund had been depleted in recent years by the skyrocketing dollar and decisions by the former Labor government to take dividends from the bank. He said former treasurer Wayne Swan had credited $500 million of the bank's total earnings in 2011/12 to the government "against the advice" of the central bank. RBA governor Glenn Stevens wrote to Mr Hockey after the election indicating it would be appropriate for the bank's reserve fund to be increased to 15 per cent of its assets at risk. Mr Hockey said the reserve fund currently sits at 3.8 per cent, but the $8.8 billion would ensure the recommended 15 per cent target was met. He said it was important the RBA was equipped to deal with the challenges ahead, as Australia's financial system relied on its strength and credibility in performing its duties.