Solomon Islands dollar
| Solomon Islands dollar | |
|---|---|
| ISO 4217 | |
| Code | SBD |
| Denominations | |
| Subunit | |
| 1/100 | cent |
| Symbol | SI$ |
| Banknotes | $5, $10, $20, $50, $100 |
| Coins | 10, 20, 50 cents, $1, $2 |
| Demographics | |
| User(s) |
 Solomon Islands
|
| Issuance | |
| Central bank | Central Bank of Solomon Islands |
| Website | www.cbsi.com.sb |
| Valuation | |
| Inflation | 3.4% |
| Source | Central Bank of Solomon Islands, August 2009. |
The Solomon Islands dollar (ISO 4217 code: SBD) is the currency of Solomon Islands since 1977. Its symbol is "SI$", but the "SI" prefix may be omitted if there is no confusion with other currencies also using the dollar sign "$". It is subdivided into 100 cents.
Prior to the Solomon Islands Dollar, Solomon Islands used the Australian pound sterling. However, the Solomon Islands had also issued its own banknotes, sometimes called the Solomon Islands pound.
When Solomon Islands fell under the control of Imperial Japan during the Second World War, the Oceanian pound, a so-called "Japanese Invasion Currency", became the official currency until after the war ended and the Pound was restored.
In 1966 the Australian dollar replaced the pound, and was circulated in the Solomon Islands until 1976, shortly before independence.
The Solomon Islands dollar was introduced in 1977, replacing the Australian dollar at par, following independence. Until 1979, the two dollars remained equal, then for five months the SI$ was pegged at SI$1.05 = A$1, and later floated. Economic stagnation ensued, so over the next 28 years, and especially during the civil war of 2000–2003, inflationary pressure reduced the Solomon Islands dollar to be worth 15 Australian cents.
In 2008, due to the low valuation in the currency, many Islanders took to hoarding coins and giving them to children as souvenirs, causing a coin shortage. Some more traditional monetary forms, such as dolphin teeth, have in a few areas taken the place of coins. A public awareness campaign was launched to encourage people to cash in excess coins at the bank to help alleviate the shortfall.
The Solomon Islands dollar did not descend directly from the Spanish pieces of eight, as is the case with the US, the Canadian, and East Caribbean dollars; several other currencies called "dollars" are also not direct descendants, e.g., the Australian and Jamaican currencies. The Solomon Islands dollar is an offshoot of the Australian dollar, which is in turn essentially a half pound sterling. Australia followed the pattern of South Africa in that when it adopted the decimal system, it decided to use the half pound as its unit.
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