The recent decline in international currency exchange rates offered by Bank South Pacific (BSP) has raised concerns among local and overseas investors, including those operating in the Solomon Islands.
Richard Kabil Junior, President of the East New Britain Shell Money Foundation, told the Solomon Star recently in Gizo that the weaker rates are affecting businesses and individuals who depend on BSP for international transactions and trade.
“The exchange rate has dropped since the ownership of BSP moved to Fiji, and most investors are affected,” Mr. Kabil said.
Mr. Kabil, who frequently purchases shell money from Roviana Lagoon for trade, highlighted his own experience when attempting to withdraw Papua New Guinea Kina 22,000 and convert it to Solomon Dollars at a rate of just 1.7.
He said the lower rate has forced a decline in the price he can pay local producers of shell money, directly affecting communities who rely on the trade for income.
“We used to know that our currency would double, but today it is no longer the case. It has dropped significantly,” he explained.
Business observers say such fluctuations could discourage investment and place additional strain on small-scale industries like the shell money trade, which link traditional culture with modern economic activity.
BSP is the largest bank in the Pacific, operating in several island nations, and exchange rate changes often have a direct impact on regional economies.
By AUGUSTINE PENEVOLOMO
Solomon Star, Gizo
