Country information - ANZ in the Solomon Islands

Country information

People

Population: 495,026 (2007)
Languages: English & Pidgin

Ethnic groups: Melanesian 93%, Polynesian 4%, Micronesian 1.5%, European 0.8%, Chinese 0.3%

Geography

The Solomon Islands are located in the northwest Pacific Ocean. The country consists of a scattered archipelago of nine large islands and many smaller ones.

Economy

Currency: Solomon Islands Dollar (SBD)
GDP per capita (2007): USD 704
GDP growth (2007): 5.4%
Exports: timber, fish, copra, palm oil, cocoa

Government

Government: Parliamentary democracy
Head of State: HM Queen, represented by Governor General H.E. Nathaniel Waena

Exchange control

Foreign exchange regulations are determined by the Central Bank of Solomon Islands (CBSI)
Trading banks operating in Solomon Islands act as authorised dealers
For exchange purposes, CBSI distinguishes between resident and non-resident companies and business, and between permanent residents and temporary residents
Exchange control approval or referral is required for most outward capital transactions and transfers
CBSI approval is required for all overseas borrowing
Payments for imports and conversion of export proceeds can be effected promptly, provided all required documentation or stipulated conditions for the export of good are evidenced
Foreign currency accounts are generally not allowed.

Banking regulations

Financial institutions in the Solomon Islands are regulated under the Financial Institution Act 1998
7.5% of all deposits must be held with the Central Bank in the Call Account for prudential requirements
There is an inter-banking borrowing/lending market. There are also various government-subsidised funding schemes to commercial banks to enable them to finance business and development projects undertaken by Solomon Islanders in designated priority sectors.

Taxation

Resident companies are taxed at 30%.
Non-resident companies are taxed at 35%.