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Our Objectives

The objectives of the Bank of Papua New Guinea are set out in the Central Banking Act. They are: to achieve and maintain price stability as the primary objective; and, as secondary objectives, to ensure financial stability; to promote sustainable medium term economic growth, especially in the non-mineral and non-petroleum sector; and to promote the development of the financial sector.

The Central Banking Act (as amended) sets one primary objective and three secondary objectives for the Bank of Papua New Guinea. The Bank's actions are guided by these objectives. 

These objectives are:

  1. to achieve and maintain price stability as the primary objective; 

    and, as secondary objectives,

  2. to ensure financial stability;
  3. to promote sustainable medium term economic growth, especially in the non-mineral and non-petroleum sector; and
  4. to promote the development of the financial sector of Papua New Guinea’s financial system. [Section 7(a-b)]
FUNCTIONS OF THE CENTRAL BANK

Section 8 of the Principal Act was amended in 2024 by repealing subsection (1) and replacing it with the following new subsection:

"(1) In pursuance of its objectives, the Central Bank may -
(a) formulate and implement monetary policy; and
(b) issue currency; and
(c) act as an efficient and responsive banker and financial agent to the Government; and 
(d) regulate banking, credit, insurance and other financial services empowered by this Act or by any other law; and
(e) manage the gold, foreign exchange and other international reserves of Papua New Guinea; and
(f) promote and oversee an efficient national and international payment system; and
(g) formulate financial regulation and prudential standards; and
(h) perform any function conferred on it by or under any international agreement to which Papua New Guinea is a party; and
(i) perform any other function conferred on it by or under any other law in Papua New Guinea.". [Section 8 (1) (a-i)]