Further Rise Predicted for Foreign Reserves

The Central Bank of Solomon Islands has predicted that the country's foreign reserves will continue to rise in the next quarter.

CBSI estimates that the reserves will increase by about SBD$80 million dollars. The bank says substantial inward investment by Gold Ridge will also contribute to upward movement in gross foreign reserves. CBSI also reported that spillover financial benefits from agriculture and logging have helped to improve export receipts.

CSBI stated in the SIBC that while the economy of the Solomon Islands is susceptible to external shocks, the planned offshore investment by the National Provident Fund will ensure that foreign reserves do not deteriorate excessively.

Likewise, CBSI says the takeover of the National Bank of Solomon Islands may have a small negative effect, if large amounts of the capital share paid to employees are spent on imported goods such as cars.