THE introduction of international banks like the Bank of China into the country could alleviate foreign exchange challenges and boost trade for PNG, said Deputy Prime Minister John Rosso.
Mr Rosso said this in Lae this week affirming his support for the establishment of the Bank
of China in the country.
He said if the Bank of China or any other banks meet international laws and PNG financial and banking regulations then they are welcome to operate in the country.
“We encourage more banks here because there are very few options,” he said.
He said more banking options could help stabilise PNG’s foreign exchange availability,
especially the US Dollars, and allow trade in Chinese currency.
Mr Rosso dismissed concerns about potential national security risks.
He said a bank is here
to boost the economy and trade and is not a national security threat to the country or the region.
He said that despite the arrival of the Bank of China, PNG’s strong bilateral relationship with Australia would remain unaffected.
“Our relationship with Australia is at its strongest; Australia will always be PNG’s number one partner,” he said.
“But as a sovereign nation, we should be free to make trade decisions in the best interest ofour people.”
Mr Rosso said that as long as the Bank of China or any other international bank complies with PNG’s banking regulations, they should be allowed to operate, thereby, facilitating ease of business and economic growth in the country.
The Bank of China established its presence in the country last year with the launching in Port Moresby.
According to the Australian Broadcasting Corporation (ABC) this expansion has raised concerns in Australia regarding potential financial exploitation, especially with Port Moresby set to open its first casino next year.
Australia is concerned on the risks tied to a casino and foreign banking operations.
Australia and the US are closely monitoring China’s growing influence in the region as Western banks continue to exit the Pacific.
