L Wilson Kamit: Papua New Guinea's new banknote series
Speech by Mr L Wilson Kamit, CBE, Governor and Chairman of the Board of the Bank of
Papua New Guinea, on the release of the new series K20 banknote, Port Moresby,
8 November 2007.
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I wish to extend a warm welcome to all of you attending this evening's launching of the new
series K20 banknote.
The Bank of Papua New Guinea has timed the release of the new K20 banknote to coincide
with our 34th birthday, which is today. On 02 November 1973, a young Michael Somare,
Chief Minister unveiled a plaque at our Douglas Street building and the country's central
bank - the Bank of Papua New Guinea was opened for business. Over the years we have
sought to celebrate important events on our birthday. We opened our new office, the
ToRobert Haus on 1 November 1991 and we released the new K100 banknote on 02
November 2005.
Ladies and Gentlemen, Papua New Guinea first introduced its own currency, the Kina and
toea, thirty-two (32) years ago on 19 April 1975, our 'Kina & Toea Day'. The first issue of our
banknotes were in the 2 Kina, 5 Kina and K10, a little later K20 banknote all in paper
substrate. The banknotes designs depicted the national crest on the front and our various
traditional forms of money on the back. The design of the National Parliament was later
added to the K10 banknote. Prior to 1991, all our banknotes were in paper substrate. In
keeping with developments in the banknote security printing world, Papua New Guinea
became the second country outside of Australia to move into using polymer (plastic) for
banknotes, through the introduction of the Commemorative South Pacific Games K2.00
banknote in 1991.
This was the first major shift in our quest to identify a cost efficient solution to cash handling.
We found that the polymer notes were more durable and they lasted longer.
Our economy is predominantly a cash-based one where the majority of our people continue
to use cash (coins and banknotes) as the main form of payment in settling their transactions.
There is the need to ensure we issue an acceptable quality of banknotes with longevity,
given our humid/tropical conditions and the frequent and rough handling of currency by the
public. We also need to provide currency that enhances modern security features against
counterfeiting. With continuous technological advances, we must continuously upgrade our
currency to adapt to the new standards. For instance, our banknotes must be of the quality
and specifications for use in Automated Tellers Machines (ATMs). Our banknotes must
therefore be able to be used by humans and machines alike.
The on-going design changes to our currency are not only in accordance with one of our
legislative objectives of promoting an efficient payments system but is also recommended
and acceptable practice for currency issuers (usually Central Banks) at certain intervals over
time to introduce new designs and features into their banknotes to combat and prevent
counterfeiting and to keep abreast of technological advances.
The Central Bank is committed to ensuring our currency is of the highest standards and
quality, is safe and secure and is widely acceptable and convenient to use. We are in the
process of introducing an automated currency processing system to improve on our
counting, sorting and online destruction of soiled banknotes initially in Port Moresby and
eventually to our Currency Distribution Centres in Mt Hagen, Lae and Kokopo. This will
ensure that under our Clean Banknote Policy we will maintain the standards and quality of
our banknotes in the hands of the public. I wish to appeal to the general public and business
houses to assist us improve the quality of our banknotes in circulation by returning old and
torn banknotes to any of the commercial banks in exchange for new notes and coins.
The next major shift in our banknote history was the introduction of the "Parliamentary"
theme on the front of the notes. The Parliament already appeared on the K10 and K50 also
has the portrait of Sir Michael Somare who brought a united Papua New Guinea to Self
Government in 1973 and eventually Independence in 1975.
In 2005, The Bank of Papua New Guinea undertook a review and modification of the design
and upgrade the security features while retaining the traditional flavour of the original
banknote designs. In re-designing our currency, we re-emphasized Nation building and
Nationhood and hence the family of banknotes depicting the national crest which is the
stylized bird of paradise sitting on a kundu drum and the ceremonial spear and the National
Parliament which already appears on the front of the K2, K10, K50 and K100. The designs
on the back of the notes remain unchanged.
I wish to acknowledge the role of the security/banknote printers we have been associated
with. We deal with De La Rue for paper banknotes and Note Printing Australia Limited for
polymer (plastic) banknotes. Their advise on technical matters and have assisted us on the
technical specification, security and design requirements for our new banknotes which has
enabled the Bank to make informed decisions in designed layout, printing, distribution,
withdrawal and eventual destruction. In the case of polymer banknotes, they are actually
recycled into pot plants, wheel barrows, car bumpers/fenders.
With these few remarks, ladies and gentlemen, it gives me great pleasure to introduce the
new series K20 banknote in commemoration of the 34th anniversary of Bank of Papua New
Guinea, and to join the family of banknotes depicting the Parliament theme. The new K20
becomes legal tender on Monday, 5 November 2007 and they will be used side by side with
the existing K20 notes until they are phased out over time.
Thank you and God bless.