Gane Simbe: The role coins play in the Solomon Islands' payment
system
Speech by Mr Gane Simbe, Deputy Governor of the Central Bank of Solomon Islands, at the
launching of the Solomon Islands new coins, Honiara, 4 July 2012.
* * *
[I have a message for you in my speech this afternoon. And the message is this: "Coins are
important for proper pricing of your goods and services and therefore you must actively use
the coins in your daily transactions and not to store coins away in wooden boxes! Using
coins as medium of exchange will bring much benefit to you and help our economy grow".]
The honourable Prime Minister Mr Lilo; members of Diplomatic Corps who are present with
us this afternoon, CEO of Royal Australian Mint, Mr MacDiarmid, distinguish guests, the
good people of Solomon Islands now listening, Ladies and gentlemen.
Good afternoon to you all and thanking for being part of our celebration this afternoon.
First let me on behalf of the Board of Directors of the Central Bank of Solomon Islands and
the Governor, thank the Honourable Prime Minister who has allocated his time from his busy
schedules to come and officially launch the new coins, as the legal tender coins for our
vibrant country, the Solomon Islands.
And I am pleased that our Prime Minister is given this honour to launch the new coins,
because the decision that Solomon Islands should have its own currency as one of the key
symbols of an independent State of Solomon Islands, was a major political decision made by
our political leaders in early 1970s (the alternative was whether to continue use the
Australian dollar as the currency for the Independent State of Solomon Islands).
Looking back at the historical journey of our country, the decision to issue our own currency
in my personal opinion was a correct decision. Our currency remains a symbol for our
independent State and having our own currency has contributed to the management of our
economy, especially in terms of balance of payment management in times of economic
stresses.
These new coins I am sure will continue to play their roles in the daily trading activities in
Solomon Islands for many years ahead of us, so long as we choose to continue to live the
dreams of our pioneering political leaders to have one country, one people, one nation, one
national budget and one currency to symbolize our independence.
Secondly, I thank the CEO of the Royal Australian Mint, Mr MacDiarmid for his kind words.
As the Chairman of the Currency Steering Committee, I appreciate the relationship that we
have developed with Royal Australian Mint, in this project. Particularly for the Mint to avail of
its three officers, Technical Director Dr Parbir De Ms Kay Chee and Mr Nigel Priest to work
with my Committee on this currency reform agenda. Thank you Mr MacDiarmid and your
officers the support.
At the same time I would also like to take this opportunity to acknowledge the contribution of
Mr Daniel Haridi, Chief Manager of the Currency and Banking Operations who is also the
secretariat to the Committee and our link with the Royal Australian Mint. Without his
commitment, we might miss the targeted outcome for this project. Time does not permit me
to thank all members of my Committee individually and to those that contributed in different
ways towards this project. But I on behalf of the Board of Directors and the Governor, wish to
thank you all for your valuable contributions towards the completion of this project.
When the Committee started 2 years ago we targeted the 7th July 2012 as the date when
these new coins are to be launched. It appears that we are ahead of the scheduled date by
3 days and as of today the new coins are available at all of the commercial bank branches
and agencies through the Solomon Islands. Congratulations to you all who provided the
logistical support to achieve this outcome!
Thirdly, let me repeat the message I made at my opening remark. This same message I note
is again highlighted in the Prime Minister's speech, this afternoon.
And the message is this: "Coins are important for proper pricing of your goods and services
and therefore you must actively use the coins in your daily transactions and not to hide coins
away in wooden boxes!" Storing coins in containers and not circulating them does not add
value to you or the economy. If we want to use the coins as savings, then it is more
beneficial to deposit your coins in a financial institution to grow your savings than locking
them up in wooden boxes.
I say this, because the cost of minting coins is expensive for the government. However since
coins have a critical role in pricing of our goods and services and facilitate economic growth
through trading coins must be made available to the economy.
Let me remind you that the basic unit of our currency is the one dollar. One dollar is made up
of 100 cents and prices can fall as fraction of the one dollar. For example if we have no
smaller coins, the prices of goods or services will start from one dollar and will increase by
the multiples of one dollar. To void this possibility of unfair pricing, coins are issued at
different face value to help with pricing of goods and services. A 10 cent represents 10% of
the one dollar, 20 cents 20% of one dollar, and a 50 cent represents 50% of one dollar. In
other words prices can fall as proportion of one dollar and we required coins to set the level
of prices and receive correct change when we buy goods and services.
My message to all of you therefore is simple. Our new coins are meant to serve the Solomon
Island economy for the next 30 years. To ensure that these coins play their role in the
smooth operation of our pricing and payment system you must circulate the coins.
The new coins have added benefits that you the people have told us to incorporate in the
new coins. They are smaller in sizes and much lighter weight. And I am sure the new coins
will not put holes your pockets when you carry them to make payments. I therefore invite you
all to use the new coins when making small payments.
Finally, Honourable Prime Minister and the good people of Solomon Islands, may I on behalf
of the Board of Directors, the Governors, the Management and Staff of Central Bank,
congratulate the Government and people of Solomon Islands on achieving and celebrating
34th year of our country's Independence.
Congratulation! May God bless Solomon Islands and long live its currency, the Solomon
Islands dollar. Thank you all.