Abstract
2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Solomon Islands
Fund Relations
(As of July 31, 2018)
Membership Status: Joined September 22, 1978; Article VIII
General Resources Account:
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 20.80 | 100.00 |
| Fund holdings of currency | 17.65 | 84.87 |
| Reserve position in the Fund | 3.15 | 15.14 |
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 20.80 | 100.00 |
| Fund holdings of currency | 17.65 | 84.87 |
| Reserve position in the Fund | 3.15 | 15.14 |
SDR Department:
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 9.91 | 100.00 |
| Holdings | 0.43 | 4.36 |
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 9.91 | 100.00 |
| Holdings | 0.43 | 4.36 |
Outstanding Purchases and Loans: SDR Million Percent Quota
| SDR Million | Percent of Quota | |
|---|---|---|
| ECF Arrangements | 1.03 | 4.93 |
| SCF Arrangements | 2.08 | 10.00 |
| SDR Million | Percent of Quota | |
|---|---|---|
| ECF Arrangements | 1.03 | 4.93 |
| SCF Arrangements | 2.08 | 10.00 |
Latest Financial Arrangements:
| Type | Approval Date | Expiration Date | Amount Approved (SDR Mission) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | 12/7/2012 | 3/31/2016 | 1.04 | 1.04 |
| SCF | 12/6/2011 | 12/5/2012 | 5.20 | 0.00 |
| SCF | 6/2/2010 | 12/1/2011 | 12.48 | 12.48 |
| Type | Approval Date | Expiration Date | Amount Approved (SDR Mission) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | 12/7/2012 | 3/31/2016 | 1.04 | 1.04 |
| SCF | 12/6/2011 | 12/5/2012 | 5.20 | 0.00 |
| SCF | 6/2/2010 | 12/1/2011 | 12.48 | 12.48 |
Projected Payments to Fund:1/
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 0.71 | 1.46 | 0.13 | 0.19 | 0.21 |
| Charges/Interest | 0.04 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total | 0.75 | 1.55 | 0.22 | 0.28 | 0.30 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 0.71 | 1.46 | 0.13 | 0.19 | 0.21 |
| Charges/Interest | 0.04 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total | 0.75 | 1.55 | 0.22 | 0.28 | 0.30 |
Implementation of HIPC Initiative: Not applicable.
Implementation of MDRI Assistance: Not applicable.
Implementation of CCR: Not applicable.
Exchange Rate Arrangements:
The exchange rate arrangement is a conventional peg. The Solomon Islands dollar is pegged to an invoice-based basket of currencies consisting of the U.S. dollar (with the weight of 58 percent), the Australian dollar (32 percent), the New Zealand dollar (5 percent), the Japanese yen (3 percent), and the British pound (2 percent). The Central Bank of Solomon Islands sets the exchange rate vis-à-vis the U.S. dollar in such a way as to maintain the value of the basket constant in Solomon Islands dollars given the movements of currencies in the basket relative to each other. Since the second half of 2014, exchange rate policy management has aimed to keep the value of the basket stable and to avoid real exchange rate misalignment stemming from inflation differentials with trading partners. Solomon Islands maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions. Commercial banks can exchange the Solomon Islands dollar against other currencies and are free to set the bid-ask spread for all currencies except the U.S. dollar and Australian dollar on which there is a spread limit of ±20 and ±25 basis points, respectively. In addition, the central bank maintains a standing facility through which it will buy and sell foreign exchange with commercial banks and the government at spot offer and sell rates.
Last Article IV Consultation: The 2017 Article IV Consultation discussions were held in Honiara during September 19–28, 2017. The staff report (IMF Country Report No. 18/57) was considered by the Executive Board and the consultation concluded on February 16, 2018.
Technical Assistance: Technical assistance on public financial management, tax arrears, macroeconomic programming framework, bank supervision, and statistics (GDP and government finance) has been provided mainly through PFTAC.
Resident Representative: The resident representative office in the Pacific Islands was opened in September 2010 in Suva, Fiji. Ms. Leni Hunter is the current Resident Representative.
Relations with other IFIS
Relations with other IFIS:
World Bank Group: http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=SB
Asian Development Bank: https://www.adb.org/countries/solomon-islands/main
Pacific Financial Technical Assistance Center: https://www.pftac.org/content/PFTAC/en1/reports11.html#tab_5
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. | |
| National Accounts: Recent technical assistance (TA) from the Pacific Financial Technical Assistance Center has led to improvements in national accounts at constant and current prices. GDP estimates through 2016 on the production side and the expenditure side were released in February 2018. PFTAC has provided technical assistance to assist with rebasing GDP estimates from 2004 to 2012. Rebased estimates are scheduled to be released by the end of September 2018. | |
| Price statistics: A monthly consumer price index (CPI) is produced with a short lag (about a month), but only covers the capital Honiara. The authorities are currently expanding the coverage in order to compile a nationwide CPI, with assistance from the Australian Bureau of Statistics. The index weights are also to be revised using the results of the 2012/13 Household Income and Expenditure Survey. A core inflation index was released in December 2013. | |
| Government finance statistics: Monthly fiscal data for the central government are published by the Ministry of Finance and Treasury (MOFT). The authorities have started collecting disbursement information on donors’ grants, including those unappropriated in the budget. Monthly public sector debt data are published, and the quality of debt data has improved through better coordination between the MOFT and the Central Bank of Solomon Islands (CBSI). The MOFT does not report revenue, expenditure, balance and composition of financing for the general government because it currently does not have the capacity to compile such statistics. PFTAC is working with the authorities to improve the quality of statistics, including expanding institutional coverage. | |
| Monetary and financial statistics: The CBSI publishes monthly monetary and financial statistics (MFS) in summary form and reports data for the central bank, other depository corporations and other financial corporations to the IMF’s Statistics Department using the standardized report forms (SRFs). An integrated monetary database meeting the monetary data needs of the CBSI, APD and STA is in operation. Financial Soundness Indicators: Financial soundness indicators are reported quarterly. | |
| External Sector Statistics: The CBSI has been compiling quarterly balance of payment (BOPS) and international investment position (IIP) statistics by using data sources such as the Foreign Exchange Transaction System (FET) and different surveys. Coordinated Direct Investment Data (CDIS) have been compiled since 2014. These data are reported to IMF Statistics Department. The BSI has also compiled quarterly Gross External Debt Position Public Sector Debt, Publicly-Guaranteed Private Sector Debt, and Private Sector Debt Not Publicly Guaranteed. These data are disseminated in the World Bank Quarterly External Debt Statistics (QEDS) database. Solomon Islands has been one of the beneficiaries of the Japan Administered Account (JSA) Project on the improvement of external sector statistics (ESS). Several technical assistance (TA) missions have been conducted under this project. The last one was conducted in April 2018. ESS have been improved and are now broadly considered compliant with the BPM6. Despite the progress achieved, limitations in the scope, classifications, and dissemination of ESS remain that distort Solomon Island’s external macroeconomic accounts. | |
| II. Data Standards and Quality | |
| Solomon Islands is a participant of the Enhanced General Data Dissemination System (e-GDDS). | No data ROSC is available. |
| III. Reporting to STA (Optional) | |
| Solomon Islands reports annual government finance statistics to STA. Currently, data are available for budgetary central government for 2011–16. | |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. | |
| National Accounts: Recent technical assistance (TA) from the Pacific Financial Technical Assistance Center has led to improvements in national accounts at constant and current prices. GDP estimates through 2016 on the production side and the expenditure side were released in February 2018. PFTAC has provided technical assistance to assist with rebasing GDP estimates from 2004 to 2012. Rebased estimates are scheduled to be released by the end of September 2018. | |
| Price statistics: A monthly consumer price index (CPI) is produced with a short lag (about a month), but only covers the capital Honiara. The authorities are currently expanding the coverage in order to compile a nationwide CPI, with assistance from the Australian Bureau of Statistics. The index weights are also to be revised using the results of the 2012/13 Household Income and Expenditure Survey. A core inflation index was released in December 2013. | |
| Government finance statistics: Monthly fiscal data for the central government are published by the Ministry of Finance and Treasury (MOFT). The authorities have started collecting disbursement information on donors’ grants, including those unappropriated in the budget. Monthly public sector debt data are published, and the quality of debt data has improved through better coordination between the MOFT and the Central Bank of Solomon Islands (CBSI). The MOFT does not report revenue, expenditure, balance and composition of financing for the general government because it currently does not have the capacity to compile such statistics. PFTAC is working with the authorities to improve the quality of statistics, including expanding institutional coverage. | |
| Monetary and financial statistics: The CBSI publishes monthly monetary and financial statistics (MFS) in summary form and reports data for the central bank, other depository corporations and other financial corporations to the IMF’s Statistics Department using the standardized report forms (SRFs). An integrated monetary database meeting the monetary data needs of the CBSI, APD and STA is in operation. Financial Soundness Indicators: Financial soundness indicators are reported quarterly. | |
| External Sector Statistics: The CBSI has been compiling quarterly balance of payment (BOPS) and international investment position (IIP) statistics by using data sources such as the Foreign Exchange Transaction System (FET) and different surveys. Coordinated Direct Investment Data (CDIS) have been compiled since 2014. These data are reported to IMF Statistics Department. The BSI has also compiled quarterly Gross External Debt Position Public Sector Debt, Publicly-Guaranteed Private Sector Debt, and Private Sector Debt Not Publicly Guaranteed. These data are disseminated in the World Bank Quarterly External Debt Statistics (QEDS) database. Solomon Islands has been one of the beneficiaries of the Japan Administered Account (JSA) Project on the improvement of external sector statistics (ESS). Several technical assistance (TA) missions have been conducted under this project. The last one was conducted in April 2018. ESS have been improved and are now broadly considered compliant with the BPM6. Despite the progress achieved, limitations in the scope, classifications, and dissemination of ESS remain that distort Solomon Island’s external macroeconomic accounts. | |
| II. Data Standards and Quality | |
| Solomon Islands is a participant of the Enhanced General Data Dissemination System (e-GDDS). | No data ROSC is available. |
| III. Reporting to STA (Optional) | |
| Solomon Islands reports annual government finance statistics to STA. Currently, data are available for budgetary central government for 2011–16. | |
Solomon Islands: Table of Common Indicators Required for Surveillance
(As of September 2018)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); and not available (NA).
Solomon Islands: Table of Common Indicators Required for Surveillance
(As of September 2018)
| Date of latest observation | Date received | Frequency of Data /7 | Frequency of Reporting /7 | Frequency of Publication /7 | |
|---|---|---|---|---|---|
| Exchange Rates | Jun-18 | July-18 | D | W | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities/1 | Jun-18 | July-18 | M | M | M |
| Reserve/Base Money | Jul-18 | Sep-18 | M | M | M |
| Broad Money | Jul-18 | Sep-18 | M | M | M |
| Central Bank Balance Sheet | Jul-18 | Sep-18 | M | M | M |
| Consolidated Balance Sheet of the Banking System | Jul-18 | Sep-18 | M | M | M |
| Interest Rates/2 | Jul-18 | Sep-18 | M | M | M |
| Consumer Price Index | May-18 | July-18 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing/3 – General Government/4 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing/3– Central Government | Dec-17 | Apr-18 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt/5 | June-18 | July-18 | M | M | M |
| External Current Account Balance | Mar-18 | July-18 | Q | Q | Q |
| Exports and Imports of Goods and Services | May-18 | July-18 | Q | Q | Q |
| GDP/GNP (GDP production) | 2014 (Production 2014) | 2015 (Production 2014) | A | A | A |
| Gross External Debt | Mar-18 | July-18 | Q | Q | Q |
| International Investment Position/6 | Q4–2017 | May-18 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); and not available (NA).
Solomon Islands: Table of Common Indicators Required for Surveillance
(As of September 2018)
| Date of latest observation | Date received | Frequency of Data /7 | Frequency of Reporting /7 | Frequency of Publication /7 | |
|---|---|---|---|---|---|
| Exchange Rates | Jun-18 | July-18 | D | W | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities/1 | Jun-18 | July-18 | M | M | M |
| Reserve/Base Money | Jul-18 | Sep-18 | M | M | M |
| Broad Money | Jul-18 | Sep-18 | M | M | M |
| Central Bank Balance Sheet | Jul-18 | Sep-18 | M | M | M |
| Consolidated Balance Sheet of the Banking System | Jul-18 | Sep-18 | M | M | M |
| Interest Rates/2 | Jul-18 | Sep-18 | M | M | M |
| Consumer Price Index | May-18 | July-18 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing/3 – General Government/4 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing/3– Central Government | Dec-17 | Apr-18 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt/5 | June-18 | July-18 | M | M | M |
| External Current Account Balance | Mar-18 | July-18 | Q | Q | Q |
| Exports and Imports of Goods and Services | May-18 | July-18 | Q | Q | Q |
| GDP/GNP (GDP production) | 2014 (Production 2014) | 2015 (Production 2014) | A | A | A |
| Gross External Debt | Mar-18 | July-18 | Q | Q | Q |
| International Investment Position/6 | Q4–2017 | May-18 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); and not available (NA).
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.