About Financial Markets
The Bank of Papua New Guinea oversees the Foreign Exchange Market Operations, Foreign Reserve Management, Domestic Money Market Operations and Development, implements monetary policy via the Open Market Operations, Act as an Agent to the Government, and provides Registry and Custody services to the Government of Papua New Guinea. The Bank also plays a Regulatory role in the financial markets in Papua New Guinea.
One of the monetary policy tools the Bank of PNG (Bank) uses to implement monetary policy is Open Market Operations (OMO) and this is done in the Financial Markets where Central Bank and Government Securities are traded or issued to support the Bank’s stance of policy.
Central Bank securities include Central Bank Bills (CBBs), sold through an auction, and Central Bank Bills Tap Facility (CBB Tap), sold over the counter. Both CBBs and CBB Tap are money market instruments available for short-term investments. CBBs are restricted to only deposit taking institutions and CBB Tap is restricted to only small investors. For more information on Eligibility requirements, refer to CBBs and CBB Tap Terms and Conditions.
The Bank is also currently the Authorised Issuing and Paying Agent, and Registrar of Government Securities. In this role, the Bank is responsible for conducting the trading or issuance of Government securities which include Treasury Bills (TB) and Inscribed Stock (IS). The Bank does this to borrow money from investors for the Government’s budget financing needs.
Treasury Bills is a money market instrument and is a short-term investment product available to the General Public while Inscribed Stock is the Government Bond and is a medium to long-term investment product currently available to only Registered Bidders. For more information on Eligibility requirements, refer to TB and IS Terms and Conditions.