4 Feb 2014

PNG and Indonesia agree on border area currency exchange

10:45 pm on 4 February 2014

The governments of Indonesia and Papua New Guinea have signed a memorandum of understanding on the use of each country's currency in the area around their common border.

The Jakarta Post reports that the MoU will regulate the use of the Indonesian rupiah and PNG kina in the border area.

The MoU, which will be in force for five years, was signed in Yogyakarta by Bank Indonesia's deputy governor for payment systems, Ronald Waas, and Bank of PNG Deputy Governor Benny Popoitai.

Mr Waas said the agreement is aimed at increasing economic activities in areas where citizens from both sides who live along the border frequently cross the divide to buy their daily provisions.

He said the agreement would increase the number of currency exchange operations available in the region, making the kina and rupiah easily obtainable, which would help small and medium enterprises to grow.