Papua New Guinea's Treasurer has signalled that the government wants Central Bank regulations tightened to prevent falling exchange rates.
Members of the Papua New Guinea government, including Treasurer Patrick Pruaitch (centre) and Prime Minister Peter O'Neill (right) Photo: RNZ / Johnny Blades
Patrick Pruaitch says companies and foreign exchange dealers have adversely affected the availability of foreign exchange within PNG by conducting transactions in overseas locations.
PNG Loop reports the Treasurer saying that agreements between the government and companies operating mining, petroleum, forestry or fisheries projects require that the Bank of PNG ensure the bulk of export earnings are repatriated back to PNG.
He urged BPNG to make sure that these companies are adhering to the spirit and letter of the law.
Meanwhile, the Governor of the Bank of PNG, Loi Bakanai, says tough penalties, which include fines and imprisonment, will be imposed on companies that do not comply with foreign exchange control directives issued earlier this month.