September 20 2021 - Melbourne - After issuing its first polymer banknote 30 years ago, Note Printing Australia offers it congratulations and appreciation to the Bank of Papua New Guinea as a polymer banknote pioneer.
Australia and Papua New Guinea (PNG) have enjoyed a long and mutually supportive relationship as neighbouring countries and political allies. Australian currency was legal tender in PNG before 1 January 1976, when the Kina became the single national currency. The name Kina was derived from a local language which described a pearl shell that was historically used for trading throughout the islands.
In introducing the Kina, Note Printing Australia (NPA) initially printed the nation’s paper currency for Bank of Papua New Guinea (BPNG). In 1991, Papua New Guinea became the first country outside Australia to issue a polymer banknote – the 2 Kina. The waterproof and durable nature of polymer banknotes were an ideal solution to the challenges of distributing and managing their national currency. The collaboration and goodwill between BPNG and NPA can be seen in this video that covers the design and production of the most recent Kina series.
“The Bank of Papua New Guinea is one of the highpoints of national leadership in the country, and their pioneering decision to move immediately to polymer has proven to be a brilliant decision,” says NPA CEO Malcolm McDowell. “Across the last 30 years, polymer banknotes recast PNG as an early adopter of innovation and the notes themselves have served the currency needs of the nation extremely well.”
When he last visited NPA, BPNG Deputy Governor Joe Teria described the benefits of polymer banknotes as serving the nation in this way:
Cash a Critical Cultural and Geographical Role to Play
The Bank is an agent for unity within the country, having to manage the opinions of 800 different tribes (each with their own language!) across 600 islands.
Cash Is Considered the Glue That Keeps Rural Communities Functional
80% of PNG’s population is unbanked with the vast majority of those living in rural and remote areas. This is due to PNG’s limited banking network combined with just eight ATMs per 100,000 people on average. It is therefore critical that the currency remain functional for long periods of time.
Cash Succeeds in Areas Where Banking Infrastructure, Technology Cannot Access
Wallets are not commonly used in PNG. In certain parts of the country notes are scrunched tightly and stored in shoes and socks, and buried for long periods to keep money safely stored away (in lieu of a bank). The exposure of the notes to humidity and sweat is extreme (previously paper notes were lasting just a few months). Due to the heat, markets are open at night where lighting is poor, making colour and size distinctions between the notes extremely important for the public.
Caption
Special Relationship: NPA CEO Malcolm McDowell, Governor Loi Bakani, and Head of Commercial Services Nuwan Kalpage point to PNG’s special issue 100 Kina which was released during the 2018 APEC Summit.