Central Bank as Manager of the External Reserves
By FMECD & CBSI Media
Article No. : 11/2020
Last week we learned some tips about savings. This week we will look at one of the mandatory functions of the Central Bank of Solomon Islands which is, “Managing the External Reserves.”
External reserves are also called international or foreign exchange reserves.
According to the International Monetary Fund (IMF), “International reserves (or reserve assets in the balance of payments) are those external assets that are readily available to and controlled by a country’s monetary authorities.
External reserves are the foreign currencies held by any country’s central banks.
In Solomon Islands, the country’s external reserves are managed by the Central Bank of Solomon Islands (CBSI), the premier financial institution of the country.