Why does the Bank of PNG sell bonds like the Treasury Bill, Central Bank Bills and Inscribed Stock?

There are different reasons to why is sold. The Government in an attempt to promote Economic Growth & Price Stability through their Fiscal & Monetary Policies issue Government and Central Bank Bills.

• Fiscal Policy–refers to the government’s revenue collection & spending. When the revenue & spending are not equal at any one time, the government issues the Government Securities (Treasury Bills & Inscribed Stock) to raise funds to meet its short falls.
• Monetary Policy–refers to the Central Bank being the monetary authority controlling the supply of money targeting a rate of Interest. Central Bank Bills are issued in order to manage liquidity.