21 Apr 2015

Solomons currency no longer pegged to US dollar

5:43 am on 21 April 2015

The Central Bank of the Solomon Islands says the currency is no longer being pegged to the US dollar but will be determined by a basket of key invoicing currencies.

The quakes occurred as Solomon Islands recovers from flash floods.

Flash flooding last year preceded an economic recovery and the Central Bank now predicts 3.3 percent growth. Photo: SAVE THE CHILDREN

The Bank's governor Denton Rarawa says the change will minimise exchange rate volatilities.

He says the bank will start publishing reports on the invoice weighted index on its website www.cbsi.com.sb to show the movement of the currency basket.

The Central Bank of Solomon Islands is projecting a growth of 3.3 percent for Solomon Islands in 2015 on the back of the economic recovery after the devastating floods on Guadalcanal last year.

The projected growth is expected to come from the fisheries, agriculture, construction and services sector although the declining forestry industry remains the largest contributor by far to the Solomons economy.