Home / Travel Tips / 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.
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.
In everyday transactions, the kina is used across the country, particularly for medium and large purchases. For example:
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.
In daily life, toea coins are commonly used for small purchases such as buying fresh produce, snacks, or paying bus fares. For example:
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 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:
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:
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.
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:
Accommodation:
Transport:
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:
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:
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.
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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