The Bank of Papua New Guinea has been instructed to explore currency diversification policy options, including the possible use of the Chinese Yuan (CNY) in trade with China as an alternative to the US dollar.
Speaking to local media this afternoon, Prime Minister James Marape said the country must begin adapting to changing global financial realities.
PM Marape noted that many major economies already trade in currencies other than the US dollar.
“Why is the Chinese Yuan much lower, and why is the Japanese Yen lower?” the Prime Minister said.
“These countries use their currencies strategically to support trade, exports and competitiveness.”
He said adopting alternative settlement currencies for trade, particularly with major partners like China, could ease foreign exchange pressures and reduce PNG’s heavy reliance on the US dollar.
This is not about abandoning the US dollar, Prime Minister Marape said.
It is about exploring serious alternatives that make economic sense for Papua New Guinea, he said.
He said the Central Bank is working closely with Government to assess options that support exporters, improve liquidity, and strengthen the country’s external trade position.