Papua New Guinea introduced its own currency on 19 April 1975, known as the Papua New Guinea Kina (PGK). The kina is the major unit, with one kina equivalent to one hundred toea.
The History of Exchange in PNG
Papua New Guineans lived for thousands of years in rural areas as subsistence farmers, with a family or clan practicing self-sufficiency and producing most of what they needed for their own consumption. Goods they could not produce or make themselves were exchanged for goods they had in abundance.
Prior to colonisation (approximately 1880s to 1975) there were many different types of traditional monies used for exchange of goods. These included tabu shells, pig tusks, kina shells and toea shells. These functioned as a means of payment, as an accepted standard of value and as a store of wealth.
During the colonial period, PNG evolved from a subsistence to a market and monetary economy. The transition was part of the inevitable cultural and social changes which occurred as PNG integrated with the global economy. During this time, Papua New Guineans used German Marks and Pfennings, Japanese Yen, Australian Pounds, Shillings and Pence and most recently Australian Dollars as currency. In 1975, with the advent of independence, Papua New Guinea launched its own currency, the Kina.
The names kina and toea were selected for the currency based on their widespread use and acceptance through the coasts, islands and highlands of Papua New Guinea. The word 'kina’ is found in both tok pisin and kuanua (or tolai) languages and refers to the gold-lipped pearl shell used widely for trading and as a traditional store of wealth and adornment. The toea is the name of a shell used for trading and bride price ceremonies in the Motuan villages, valued because it is found in the depths of the ocean and only at certain times of the year. After extracting the flesh from the shell, it is worked on and transformed into armbands and becomes a means of payment and store of wealth.
PNG introduced the notes and coins on 19 April 1975 in four denominations: K2, K5 and K10 notes and a K1 coin to replace the widely used Australian dollar. The K20 note was first issued in 1977, and the K50 note was issued in 1990. The first issue of toea was in five denominations: 1t, 2t, 5t, 10t, and 20t. For the eight months to the end of 1975 both the Australian Dollar and the Kina were both accepted, but on 1 January 1976, PNG gained full monetary independence. This meant that the Australian Dollar was withdrawn from circulation and was no longer legal tender of the country.
Design and Security Features
The front of the notes shows the national crest and other design patterns from various provinces. The back of the notes features many of our traditional tools for fishing, hunting and gardening from the many different tribes and traditional cultures in the country.
To help protect our currency from counterfeiting, our banknotes have various security features. These include the slightly raised printing of the Bank of PNG logo and the numerals, the security thread in the star dust method and offset printing used on the National parliament building featuring multi-coloured patterns.
The most advanced security feature is the polymer substrate used to produce the notes. The notes also feature a clear window printed with the Bank of PNG logo, numerals in micro lettering and embossed figures. A third security feature is the intaglio printing of certain designs on the front and back of the note. Other advanced security features are incorporated into the notes but can only been seen under an ultraviolet light.
Commemorative Notes and Coins
The Bank issues new notes to commemorate certain occasions. In April 1985 the Bank issued a K10 note commemorating the new National Parliament Building, and new designs were issued for the 50th anniversary of the Bank of Papua New Guinea. A commemorative design will be issued for PNG's 50th anniversary of Independence.