ANZ Bank said it was still assessing impact of the change – in particular for its customers.
“We received a directive from the Bank of Papua New Guinea advising ANZ, along with all other licensed foreign exchange dealers, to restrict trading the kina within a 150 bps band (75bps each way) on a reference rate of 0.4130.”
“This change took effect from June 4 (two weeks ago).
“Our business in PNG is still assessing the impact of this change, in particular for our customers, while we analyse additional details and guidelines received from the Bank of Papua New Guinea.”
Meanwhile, according to Bank South Pacific (BSP) website, the bank was advised that BPNG would review the trading band in the next three to six months.
“The reference rate is subject to change.”
BPNG as the regulator of the banking system, issued a notice stating that it has realised there was market failure in trade and transacting of foreign currency and introduced the new basis points.