Basic Data:

• Country ISO Code: SB

• Official Language: English

• Language ISO Code: en

• Current Official Currency: Solomon Islands Dollar

• Current Currency ISO Code: SBD

Complete Financial History of Solomon Islands:
The Solomon Islands dollar (SBD) has been the official currency since 1977, replacing the Australian dollar at par. Prior to the SBD, the Australian pound was used, and during World War II, the Japanese-issued Oceanian pound circulated under Japanese occupation. The Australian dollar replaced the Australian pound in 1966 and was used until 1976. The Solomon Islands dollar was introduced shortly before independence in 1978 to assert monetary sovereignty.

Currency Details:

• ISO Code: SBD

• Symbol: $ or SI$ (to distinguish from other dollar currencies)

• Subdivision: 1 dollar = 100 cents

• Issued by: Central Bank of Solomon Islands (CBSI), established in 1983 under the Central Bank Act 1976; previously issued by Solomon Islands Monetary Authority (SIMA) from 1977 to 1981.

Coins:

• Initial coin denominations introduced in 1977 included 1, 2, 5, 10, 20, 50 cents, and 1 dollar coins.

• Coins feature cultural symbols and native fauna.

• Coins have been subject to hoarding during inflationary periods, leading to shortages and use of traditional forms like dolphin teeth in some areas.

Banknotes:

• Initial banknotes in 1977 included 2, 5, and 10 dollars; a 20 dollar note was introduced in 1980, and a 50 dollar note in the late 1980s.

• Banknotes initially depicted Queen Elizabeth II, later replaced by the Solomon Islands coat of arms from 1986 onward.

• Modern banknotes incorporate native design patterns, island culture vignettes, the national flag, and upgraded security features such as holographic patches and watermarks.

• In 2018, a special polymer 40 dollar note was issued to commemorate the 40th anniversary of independence, featuring local cultural and natural imagery.

Production and Minting:

• Coins and banknotes are produced by international mints and printing facilities.

• The CBSI manages issuance and currency design.

Economic Context:

• The Solomon Islands dollar was initially pegged to the Australian dollar but later floated to reflect local economic conditions.

• Inflation and civil unrest in the early 2000s significantly reduced the currency’s value, causing coin shortages and alternative traditional currencies being used.

• The government has run campaigns to encourage coin circulation to alleviate shortages.

Current Circulation Status:

• The Solomon Islands dollar remains the official and actively circulating currency.

• Both coins and banknotes are in active use.

Issuing Authority:

• Central Bank of Solomon Islands

Relevant Legislation:

• Central Bank Act 1976 and related monetary laws govern currency issuance and regulation.

Signatories on Banknotes:

• Banknotes bear signatures of the Governor of the Central Bank and the Secretary of the Treasury of the Solomon Islands.

Persons and Symbols Honored:

• Early banknotes featured Queen Elizabeth II.

• Current notes feature the Solomon Islands coat of arms, native flora and fauna, cultural motifs, and national symbols.

Summary of Coins and Banknotes in Circulation:

This report provides a comprehensive overview of the Solomon Islands’ financial history, highlighting the introduction and evolution of the Solomon Islands dollar since 1977, its design features, economic context, and current status as the sole legal tender currency.