Foreign Exchange Market and Reserves Management
The Bank of PNG is the Regulator of Foreign Exchange Market Operations and manages the country’s Foreign Reserves. To aid these, the Bank monitors and assesses the developments in the global economy, financial market conditions, and foreign exchange markets domestically and abroad. It facilitates trading in the domestic foreign exchange market by performing a broker’s role. Based on the developments in the financial and the foreign exchange markets, it designs and implements the Bank’s Intervention Strategy. The Bank also manages the foreign exchange reserves of the country and is responsible for investing the reserves in line with the Reserve Management Policy of the Bank as well as conducts Risk Management for the Foreign Reserves Operations.