Solomon Islands External Reserves Improved

Solomon Islands external reserves has improved in June to more than 791 million dollars or three-point-seven months import cover.

The Central Bank of Solomon Islands says in mid-September the foreign reserves have risen to about one-thousand-and-7 million dollars or nearly five months import cover.

The bank says the rise in foreign reserves was largely due to new Special Drawing Rights allocation to Solomon Islands by the International Monetary Fund.

The Central Bank says there has also been a three-point-four percent rise in money supply to about one-thousand-and-53 million dollars in response to a rise in the net foreign assets as total domestic credit dropped.

The bank says that excess liquidity in the banking system declined by about nine percent to about 158 million dollars in response to the monetary policy action taken by the Bank.

Meanwhile, CBSI says it will continue to monitor global and domestic economic events, in particular likely pressures on both inflation and the foreign reserves and may consider easing monetary policy as and when appropriate.


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