7 Oct 2004

Solomons' Central Bank discusses move to aussie dollar

11:26 am on 7 October 2004

Australian officials are in Solomon Islands to discuss whether the country should convert its currency to the Australian dollar.

A three-man team from the Australian Reserve Bank is holding talks with counterparts from the Solomon Islands' Central Bank in Honiara.

The Australian Reserve Bank has conducted a study at the behest of the Solomons' government.

The Prime Minister Sir Allan Kemakeza had written to Australian Prime Minister John Howard to ask for the study.

The Kemakeza government has in the past suggested that it may be a better option for Solomon Islands to convert to the Australian dollar, in order to solve its debt problems.

However, Central Bank officials say it would cost Solomon Islands an estimated US$11 million -that is doesn't have- in order to buy into the Australian dollar.