What is the Currency in Papua New Guinea?

The kina (PGK) is the official currency of Papua New Guinea, divided into 100 smaller units called toea. These terms originate from traditional shell money, which was historically used for trade and as a measure of wealth among Papua New Guinea’s communities. Today, the kina represents its link to the country’s unique cultural heritage.

From purchasing fresh produce in local markets to covering transportation and accommodation costs, familiarity with the kina and its denominations ensures hassle-free transactions. 

 

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Understanding Papua New Guinea Currency

Kina (PGK)

Introduced in 1975 to replace the Australian dollar, the kina has been Papua New Guinea’s official currency since independence. Its name reflects the historical use of shell money, a valued medium of exchange and a symbol of status within traditional communities. By naming its currency “kina,” the country honours its cultural heritage while embracing a modern monetary system.

The kina is available in both paper notes and coins, with banknotes issued in denominations of 2, 5, 10, 20, 50, and 100 kina. These notes feature vibrant designs that celebrate Papua New Guinea’s cultural diversity, natural resources, and wildlife.

Example

In everyday transactions, the kina is used across the country, particularly for medium and large purchases. For example:

  • A meal at a casual restaurant may cost around 30 to 50 kina.
  • Handcrafted souvenirs at a local market could range between 20 and 100 kina, depending on the item.

Toea

The toea is the smaller unit of the kina, with 100 toea equalling 1 kina. The name “toea” also derives from traditional shell money. Toea coins are available in denominations of 5, 10, 20, and 50 toea, making them essential for everyday transactions, particularly in markets, small shops, and rural areas.

Example

In daily life, toea coins are commonly used for small purchases such as buying fresh produce, snacks, or paying bus fares. For example:

  • A coconut in a local market might cost 50 toea.
  • A short bus ride could range from 1 to 2 kina, requiring smaller denominations like toea coins for exact payment.
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Currency in Practice

Availability and Usage

The kina and toea are widely accepted throughout Papua New Guinea, particularly in markets, local businesses, and public transportation. In rural areas and smaller towns, cash is the primary mode of payment, so it’s essential to carry kina and smaller denominations of toea for everyday transactions. These smaller denominations are especially useful for purchasing fresh produce, snacks, or paying for public transport.

In urban centres like Port Moresby and Lae, the use of digital payments is gradually increasing. Many larger businesses, supermarkets, and service providers now accept mobile and card payments, providing added convenience for locals and tourists. However, cash remains dominant in most settings.

Credit Cards and ATMs

Credit cards are accepted at larger hotels, upscale restaurants, and some retail stores, particularly in urban areas. Visa and Mastercard are the most widely accepted, but it’s always advisable to confirm acceptance before relying solely on a card for payment.

ATMs operated by major banks such as BSP (Bank South Pacific) and ANZ are available in cities and towns. Travellers should:

  • Use ATMs during daylight hours for added safety.
  • Check fees for international withdrawals, as charges may vary by bank.
  • Carry cash as a backup, as ATMs in smaller towns may run out of cash or be unavailable.
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PGK Exchange Rates to AUD

Exchange Rates

The value of the Papua New Guinea kina (PGK) against other currencies, such as the Australian dollar (AUD), fluctuates based on economic conditions, trade, and global markets. Exchange rates can vary slightly depending on where you exchange money.

Travellers can find accurate and reliable exchange rates through:

  • Banks: Banks like BSP and ANZ provide current rates on their websites and at their currency exchange counters.
  • Online Tools: Currency converters such as BSP online offer quick calculations and real-time updates.
  • Airport Exchange Counters: While convenient, airport rates may not always be as competitive as those offered at banks or local exchange providers.

To get the best exchange rate, check rates online before exchanging money, particularly using tools like the BSP website or app. It’s also wise to exchange larger amounts in one go to minimise transaction fees.

As of recent trends, 1 PGK typically converts to around 0.40 AUD (as of Jan 2025), but rates can vary. 

Example for Travellers

Understanding the conversion can help visitors budget effectively. Here are some approximate costs of common items in Papua New Guinea, converted to Australian dollars (AUD) based on an estimated rate of 1 PGK = 0.40 AUD:

Meals:

  • A local meal at a market might cost 10 PGK (4 AUD).
  • Dining at a casual restaurant could range from 30 to 50 PGK (12 to 20 AUD).

Accommodation:

  • Budget to mid-range hotels or resorts can range between 300 and 500 PGK (120 to 200 AUD) per night.

Transport:

  • Public bus fares typically range from 2 to 5 PGK (0.80 to 2 AUD).
  • A taxi ride in a city may cost around 20 PGK (8 AUD), depending on the distance
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Currency Travel Tips in Papua New Guinea

Carrying Cash

In Papua New Guinea, cash is essential, particularly in rural areas and small towns where credit cards are rarely accepted. Markets, local stores, and transportation services often operate on a cash-only basis. It’s advisable to:

  • Withdraw sufficient kina before travelling to remote areas, as ATMs may not be available.
  • Break larger banknotes into smaller denominations for ease of use, as vendors may not have change for high-value notes.
  • Keep a mix of kina and toea coins for small purchases like snacks, drinks, or bus fares.

Security and Safety

  • Use a Money Belt: Store most of your cash in a secure money belt or a concealed pouch to reduce the risk of theft.
  • Separate Your Cash: Distribute your money across different pockets, wallets, or bags to avoid losing everything at once.
  • Be Mindful at ATMs: When using ATMs, choose well-lit, busy locations during daylight hours. Avoid making large withdrawals in public areas, and shield your PIN while entering it.
  • Leave Valuables in Hotels: Use safes in hotels to store excess cash or valuables.

Small Denominations

Carrying small denominations of kina and toea is particularly helpful in daily transactions, especially in rural and market settings where change may not always be available. For instance:

  • Street vendors selling snacks or produce may only accept smaller bills or coins.
  • Public transportation, such as buses or taxis, often requires exact change.

Having smaller denominations also reduces the inconvenience of breaking large notes, making transactions smoother and quicker. It’s a practical and considerate way to engage with local businesses and communities.

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Making the Most of Your Currency in Papua New Guinea

Familiarising yourself with the kina and toea is important for an easy travel experience in Papua New Guinea. From local markets to public transport, understanding where and how to use cash ensures convenient transactions. Carrying smaller denominations and knowing where to exchange money will help you navigate both urban and rural areas with ease!

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