The primary purpose of the Central Bank of Papua New Guinea (Bank of Papua New Guinea, or BPNG) is to ensure the stability of the country's currency and financial system. This encompasses several key objectives, including:
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Monetary Policy: The BPNG formulates and implements monetary policy aimed at controlling inflation, stabilizing the currency, and promoting economic growth.
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Currency Issuance: The bank is responsible for issuing and managing the national currency, the Papua New Guinean kina.
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Regulation and Supervision: The BPNG regulates and supervises commercial banks and other financial institutions to ensure a sound banking system and protect depositors’ interests.
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Foreign Exchange Management: The bank manages the country's foreign exchange reserves and oversees the foreign exchange market to maintain stability.
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Financial Stability: It aims to ensure financial stability by monitoring and assessing risks within the financial system.
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Economic Research: The bank conducts economic research and provides data and analysis to support policy decisions and inform the public.
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Banker to the Government: The BPNG acts as a banker to the government, managing its accounts and facilitating financial operations.
Through these functions, the Central Bank of Papua New Guinea plays a crucial role in fostering a stable economic environment conducive to growth and development.