No limits on fund transfers, says BPNG

Business, Normal

THE Bank of Papua New Guinea has told the parliamentary inquiry into the anti-Asian riots that there are no limits on the amount of money coming in or going out of the country.
Internal transfer and monitoring unit acting manager Elim Kiang told the inquiry into the May riots that under the current regime, the Central Bank is only given reports by commercial banks on international money transactions.
Mr Kiang was responding to questions from the inquiry whether the Central Bank kept records on how much money comes in and goes out of the country.
Inquiry members including chairman Jamie Maxone-Graham and MPs Philip Kikala and Anthony Nene raised concerns about speculation that small Asian businessmen do not deposit money locally but send the money out of the country.
Mr Graham also asked whether the limit of K10,000 still applies, to which the response was that the specific limits under the old regime no longer apply.
Mr Kikala said there was talk on the streets that money was transferred out everyday and he wanted specific answers.
Mr Kiang, when pressed whether there were bank policies to protect PNG interests, replied that the bank did not make distinctions or discriminate against people doing business.
He said the Central Bank relied on market forces of supply and demand.
“We do not direct credit lending to businesses and individuals. It is market driven,” Mr Kiang said.
The Bank of PNG then asked the committee to put their questions in writing for the bank to make appropriate responses, including recommendations to the committee.