What is a liquid asset?
An asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value. By definition, bank notes and checking accounts are the most liquid assets.
Does the Bank of PNG print currency in the country?
No. Our Bank notes are printed in Australia, by a company called Note Printing Australia. Our coins are made in Canada by the Royal Canadian Mint.
Why does the Bank of PNG regulate Financial Institutions and Savings & Loan Societies?
The Bank of PNG regulates financial institutions and savings & loan societies to protect depositors, maintain financial system stability, and promote economic activity and growth.
Why does the Bank of PNG sell bonds like Treasury Bills and Central Bank Bills?
Government and Central Bank Bills are issued to manage liquidity and promote economic growth through fiscal and monetary policies.
What is the role of the Monetary Policy Statement (MPS) in PNG?
The MPS helps maintain price stability, builds confidence in the economy, and fosters a stable macroeconomic environment conducive to growth.
What is the Kina Facility Rate (KFR)?
The KFR is a rate introduced by the Bank of PNG to indicate its monetary policy stance. Changes in the KFR impact market interest rates.
Can PNG have a monetary policy system without a central bank?
No. The Bank of PNG's objective is to formulate and implement monetary policy to achieve price stability.
What is the primary role of the Bank of PNG?
The primary role of the Bank of PNG is to issue currency, act as banker and financial agent to the government, and regulate financial services.
Is the Bank of PNG the same as commercial banks like BSP, Westpac, or ANZ?
No. The Bank of PNG is the central bank and does not offer personal banking services. For those, you must visit a commercial bank.
What is the Kina Automated Transfer System (KATS)?
KATS is the National Payments System in PNG that moves banks from a paper-based system to an electronic system, improving efficiency and safety.