Reserve Bank of Australia Annual Report – 1975 Papua New Guinea

During 1974/75 the Reserve Bank of Australia and its central bank counterpart in Papua New Guinea, the Bank of Papua New Guinea (established on 1 November 1973), were operating in the same monetary area. From 19 April 1975 the Bank of Papua New Guinea began issuing a new currency unit, the kina, exchanging on a one for one basis with the Australian dollar. A dual currency period will extend until 31 December 1975; after this date Australian notes and coin will cease to be legal tender in Papua New Guinea.

Following the introduction of the separate Papua New Guinea currency, further reciprocal exchange control exemptions were issued by both Australia and Papua New Guinea to cover dealings between their residents. These exemptions supplement those issued on 1 November 1973 when the Australian Banking Act ceased to apply to Papua New Guinea; in the absence of exemptions the Australian Banking (Foreign Exchange) Regulations would have applied to dealings between residents of Australia and Papua New Guinea.

In April 1975, Papua New Guinea raised the limit on notes and coin which travellers may take to countries other than Australia from $A100 to an aggregate limit of K/$200 in notes and K/$5 in coin. During the dual currency period Australia has agreed to restrict exports of Papua New Guinea notes and coin by transit travellers from Papua New Guinea to K250 in notes and K5 in coin; this is in line with Australia's limits on exports of its notes and coin.