Bank to provide liquidity

BANK of Papua New Guinea (BPNG) is committed to providing US dollar liquidity to the domestic foreign exchange interbank market based on its assessment on the supply of and demand for foreign currency.
Governor Loi Bakani said in a statement that BPNG had directed authorised foreign exchange dealers (AFEDs) to give priority to retailers and wholesalers of medical drugs, medical and pharmaceutical companies, particularly the importers of products that relate to Covid-19.
“The BPNG will also make foreign currency available directly to the National Department of Health for urgent Covid-19 related purchases abroad,” he said.
Bakani said BPNG would relax prudential requirements to cover the three-month loan repayment holiday, specifically the prudential standards relating to asset quality, capital adequacy and loan-loss provisioning.
Other measures and assurance include the distributing of currency and kina automated transfer system (Kats) and retail electronic payment systems (Reps).
“Bank of Papua New Guinea will continue to supply adequate currency to commercial banks on a daily basis.
“This includes the cash distribution centres and Lae currency processing facility.
“The operations of the Kats and Reps will continue as normal.
“The bank contingency plans for system downtime and on-site support when required for both systems,” he said.