IMF ADVISES SOLOMONS AGAINST ADOPTING AUSTRALIAN CURRENCY

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HONIARA, Solomons Islands (August 30, 2002 – Radio Australia)---The International Monetary Fund has warned the Solomon Islands government against pursuing a proposal to adopt the Australian currency.

The Solomon Star says a report from a visiting IMF team states that the country's huge debts would make a smooth transition to the Australian dollar extremely difficult.

The IMF says the government would first have to acquire enough Australian currency to replace the Solomon Islands dollar.

It says the Central Bank would just have enough foreign exchange resources for this purpose but it would leave the nation with insufficient reserve assets to meet other liabilities.

The report has recommended that the government delay the plan until macro-economic stability is restored.

For additional reports from Radio Australia, go to PACIFIC ISLANDS REPORT News/Information Links: Radio/TV News/Radio Australia.

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