WHILE lack of money prevented Solomon Islands from celebrating its 43rd Independence Anniversary on Wednesday, the Central Bank of Solomon Islands (CBSI) surprised everyone by easing restrictions on how much money can be sent overseas per transaction.
Businesses can now send $1 million per transaction while personal transactions have been increased to $100, 000 per person per month – an increase of $70, 000 over the previous limit.
The announcement of the new rates was published in this paper yesterday. It runs counter to popular belief that the nation’s economy is on the dive.
All overseas payments for trade imports have been increased to $250, 000 per transaction, the CBSI said in the paid Public Notice. This is an increase of $150, 000 per transaction over the previous limit.
Goods imported on credits has substantially increased to $1 million – the largest rise announced by the CBSI, adding the authority for this transaction has been delegated to commercial banks.
It said payments of over $1 million per transaction will continue to require CBSI assessment and approval, it said.
All other service limits have increased to $250, 000 per transaction, with the authority for this transaction now rests with commercial banks.
The CBSI has also given a substantial increase on personal transfer/official travel, immigration, personal remittances and sustenance. It has now increased the limit to $100, 000 per person per month – an increase of $70,000 on the previous limit.
Application of overseas payments for insurance premium has also increased to $100,000 per transaction and will no longer require CBSI assessment and approval, but will be subject to approval by the Controller of Insurance, CBSI said.
The new rates were effective from yesterday – Thursday 8th July 2021.
There was no explanation for lifting the restrictions but some economists say what the CBSI has done in lifting the restrictions is to assure the nation that all is not bad.
“This is a two-edged sword approach. The CBSI will have to watch its decision closely because this could go either way in terms of positive or negative outcome,” one economist said yesterday.
By ALFRED SASAKO
Newsroom, Honiara
