SBD - Solomon Islands Dollar

Overview of the Solomon Islands Dollar

Before the introduction of the Solomon Islands Dollar, the country used the Australian Pound. During a brief period in World War II, when the islands were under Japanese control, "Japanese invasion money" – also known as the Oceanian Pound – was in circulation. After the war, the Australian Pound was restored.

In 1966, the Australian Dollar replaced the Australian Pound and was widely used in the Solomon Islands until 1976, just before the islands gained independence. In 1977, the Solomon Islands Dollar was introduced, replacing the Australian Dollar at a one-to-one exchange rate (1 SI$ = 1 A$).

Initially, the Solomon Islands Dollar was pegged to the Australian Dollar, but it was later adjusted to control inflation before being allowed to float. However, the economic crisis and civil war from 2000 to 2003 caused a sharp decline in the currency’s value, which at one point was only equivalent to 15 Australian cents.

The History of the Solomon Islands Dollar

Before the Solomon Islands Dollar was introduced, the island nation used the Australian Pound. During a brief period in World War II, "Japanese invasion money" – also known as the Oceanian Pound – was circulated when the islands were under Japanese control. After the war, the Australian Pound was reinstated.

In 1966, the Australian Dollar replaced the Australian Pound and was widely used in the Solomon Islands until 1976, just before the islands gained independence. In 1977, the Solomon Islands Dollar was introduced, replacing the Australian Dollar at a one-to-one exchange rate (1 SI$ = 1 A$).

Initially, the SI$ was pegged to the Australian Dollar, but adjustments were made later to control inflation before allowing the currency to float. However, the economic crisis and civil conflict from 2000 to 2003 caused the currency's value to decline sharply, dropping to the equivalent of just 15 Australian cents.

Solomon Islands Coins Through the Ages

In 1977, the Solomon Islands Dollar was introduced with coins in denominations of 1, 2, 5, 10, and 20 cents, along with a 1 Dollar coin. Each coin featured designs representing the unique cultural symbols of the islands, with the 10-cent coin standing out for its depiction of Ngoreru, the sacred sea deity of the Temotu region.

As the economy developed, the materials used to mint coins were changed to reduce production costs. In 1988, a 12-sided 50-cent coin was introduced, initially as a commemorative piece for the 10th anniversary of independence, but later became a standard denomination. However, high inflation rendered the 1- and 2-cent coins obsolete, and transactions were rounded to the nearest 5 cents.

In 2012, a new series of coins was issued, featuring smaller sizes and made from more durable alloys. Among these, the 1- and 2-Dollar coins replaced the roles previously held by banknotes. Notably, the designs of these coins closely resemble Australian coins, facilitating easier international circulation.

The Solomon Islands coins are currently issued in the following denominations:

• 1 cent

• 2 cents (no longer in circulation due to inflation)

• 5 cents

• 10 cents

• 20 cents

• 50 cents (12-sided coin introduced in 1988)

• 1 Dollar

• 2 Dollars

Solomon Islands Banknotes

The Solomon Islands Dollar banknotes were first introduced in 1977 with denominations of 2, 5, and 10 Dollars, later joined by the 20 Dollar note in 1980. Initially, these notes featured Queen Elizabeth II, symbolizing the nation's connection to the British Commonwealth. However, in subsequent series, the Queen's image was replaced with the national coat of arms, emphasizing the country's independence.

In 2006, a new series of banknotes was released, featuring brighter colors and enhanced security features, such as security threads and micro-printed serial numbers. Notably, the 5 and 100 Dollar notes were equipped with holographic overlays, improving durability and counterfeiting resistance.

A major milestone came in 2013, when the Central Bank of Solomon Islands issued the 50 Dollar note, incorporating advanced security technology from De La Rue. Since then, the designs of the banknotes have reflected cultural themes central to the islands' identity, including traditional festivals and scenes from the fishing industry, which symbolize the livelihood of its people.

The Solomon Islands Dollar banknotes are issued in the following denominations:

• $5

• $10

• $20

• $50

• $100

The Solomon Islands Dollar and Its Challenges

Despite its rich history, the Solomon Islands Dollar faces significant challenges. With an economy heavily reliant on exporting raw materials, particularly timber and seafood, the currency's value is highly susceptible to fluctuations in international markets.

Additionally, high inflation rates and limited financial infrastructure make it difficult for the currency to maintain stability. In 2008, an economic crisis led many citizens to hoard coins as keepsakes, causing a shortage of small denominations. In some regions, people even reverted to using dolphin teeth—an ancient form of "traditional currency" that dates back centuries.

Nevertheless, with improvements to the monetary system and support from international organizations, the Solomon Islands government is gradually strengthening the currency's value and striving for sustainable economic development.

 

The Solomon Islands Dollar is not just a medium of exchange but a story of national pride and identity. From the cultural symbols on coins to the modern designs of banknotes, each piece of currency tells a part of the nation's history and reflects the lives of its people.

In a globalized world, the Solomon Islands Dollar may not rank highly in exchange value but holds profound cultural significance. It serves as a testament to the connection between past and present, tradition and modernity—a quality not every currency can claim.