By Gary Hatigeva
IT is revealed that though short term, the new $40 note is a dedicatory bill, produced in dedication to the country’s 40 years in existence as a nation.
Following its official launching, a question was posed, which goes to question whether it was necessary to have a $40 note that is understandably produced to mark Solomon Islands’ 40th Independence Anniversary.
Many, who gave views on that and expressed disappointments over the decision to come up with the note, suggested that Solomon Islands wanted a stronger currency, “not new notes”.
“40 years already gone, yet the country’s economic status is still the same (slow), with so many challenges, of course that includes cash flaw crisis, and therefore does not deserve to be given any special treatment,” one expressed.
Others thought that instead of creating an odd note, the bank should have created higher valued notes, giving examples of a potential $200 or $300 bill (note).
Another also suggested that the country does not necessarily need to increase any note value, but rather increase the value in the country’s dollar.
Some reiterated that the Value of Solomon’s currency needs to be increase, and because of its weakness, they thought it was unnecessary to produce the independence note.
But following what they revealed as misreporting and misleading reports from the mainstream media over the launched notes and coin, the Central Bank of Solomon Islands (CBSI) came out with an official statement for retraction and correction.
The explanation has however shed strong lights to what many have highlighted and discussed in relation to the raised question, both on face book and in person.
Based on the reason as to why the new note, the statement explained that the $40 is a circulating commemorative note.
“As a circulating note people can use the note in their daily transactions like the existing circulating notes ($100, $50, $20, $10 and $5.)
“The commemorative nature of the note however, makes this denomination a collectible note or a memorabilia where individuals/firms etc. can use the note as a gift to their friends or visitors or retiring colleagues and so forth.
“People must note that there is also an element of rarity in this banknote issue as the Bank had only ordered a limited number of notes.
“This means that once the stock of $40 is all issued into circulation then that would be it – it is a one off production meant to celebrate the country’s 40 years of independence.
“The other issue that the report highlighted was that of a higher value denomination, particularly, why CBSI did not consider issuing a $150 or $200 denomination instead.
“In that connection, people need to be informed that the Central Bank continues to monitor the banknote structure and will introduce a higher value denomination as and when it is appropriate to do so. Currently there are five banknote denominations (i.e. $100, $50, $20, $10 and $5) and five coin denominations ($2, $1, 50c, 20c and 10c) in the country’s currency structure,” the statement explained.
The statement added that for Solomon Islands, this currency structure is considered ideal given the demand for cash in the economy and, for banknotes, their use pattern as payment and market notes.
“That said, the CBSI continues to monitor the value/volume of currency in circulation, the number of payment instruments used in the country, cash distribution issues to name a few issues,” the statement adds.
It is also revealed that CBSI will introduce a higher denomination as and when absolutely necessary. The public will be informed when this happens.