Is Forex Legal in Papua New Guinea?

Forex trading is legal in Papua New Guinea, with the Bank of Papua New Guinea (BPNG) serving as the primary regulatory authority overseeing foreign exchange activities in the country (1). The central bank maintains strict control over currency conversion and foreign exchange operations, requiring all funds held in PNG to be denominated in Papua New Guinea kina (PGK) rather than foreign currencies (2).

The regulatory framework in Papua New Guinea mandates that only licensed banks are permitted to conduct banking business, including accepting deposits, providing loans, and converting currency between kina and foreign currencies (1). This creates a controlled environment where forex trading activities must operate within the established banking system and regulatory guidelines set by BPNG.

"Bank of Papua New Guinea (BPNG) requires that all funds held in PNG be held in PNG kina (PGK). This rule was announced with little notice and caught many businesses off-guard in 2016."

While forex trading itself is permitted, traders must work through regulated brokers and authorized foreign exchange dealers (AFEDs) who have obtained proper licensing from BPNG (1). The central bank has implemented various directives to streamline foreign exchange order processing, moving away from directly verifying all foreign exchange orders to allowing authorized dealers to handle these transactions within established priorities and guidelines (1).

Source:
https://www.bankpng.gov.pg/foreign-exchange-control-directives/
https://www.trade.gov/country-commercial-guides/papua-new-guinea-trade-financing

Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.