What is a SBD (Solomon Islands Dollar)
SBD is the abbreviation for the currency of the Solomon Islands, which is known as the Solomon Islands Dollar.
BREAKING DOWN SBD (Solomon Islands Dollar)
The SBD is the abbreviation of the Solomon Islands dollar, which is the currency that replaced the former currency of the Australian dollar (AUD) and the British pound in 1977. At the time, the exchange rate was dollar for dollar with the AUD, but over the five years that followed the creation of the SBD, inflation moved the two currencies away from one another.
The SBD was made up of 100 cents, and was issued in denominations of 5,10, 20 and 50 cents. The banknote, or paper currency, was originally issued in denominations of 2, 5, 10, 20, 50 and 100 dollars. The SBD symbols are $ and SI$. These currencies are issued and redeemed by the Central Bank of the Solomon Islands.
Due to the Solomon Islands dollar losing its value over the years, it is not uncommon for locals to use other items as currency. For instance, dolphin teeth are commonly traded in lieu of the undervalued SBD within the region.
A Brief History of the Solomon Islands
The Solomon Islands are an island chain located in the Pacific Ocean. Originally a British protectorate, the islands eventually gained independence in 1978. The country is ruled by a constitutional monarchy with a single legislative house, Queen Elizabeth II and a prime minister. The official language of the Solomon Islands is English.
The country experienced some civil unrest in the late 20th and early 21st centuries. A coup that followed in 2002 led the country’s economy to the brink of collapse. The islands became insolvent in 2002, largely due to inconsistent infrastructure and unreliable transportation. Although the country has a tourism presence, they have been unable to create a more desirable vacation locale like some of their island counterparts.
The capital of Honiara is home to the Solomon Islands National Museum, which showcases many of the traditional aspects of the island’s culture. There, visitors can listen to music and watch dances of the region be performed with historical accuracy.
The islands played an important role in World War II. The Japanese forces were occupying the islands in 1942. Their attempts at advancing further south were thwarted by the United States, but for 15 months the two countries battled in and around the island chain. The fighting that took place in the region was said to be some of the most contentious in the Pacific. The Battle of Guadalcanal is thought to be a pivotal battle in the war, and the islanders were very supportive of the U.S. efforts during that time.