The foreign exchange controls (the exchange controls) in Papua New Guinea (PNG) are derived from the Central Banking (Foreign Exchange and Gold) Regulation (the Regulation), which had been in operation in PNG prior to independence in 1975.

Exchange controls were designed to support the balance of payments and to manage the foreign exchange reserves under the fix exchange rate regime that was adopted by PNG.

In implementing the exchange controls, only bona fide Kina and foreign exchange and gold transactions between residents and non-residents are approved. Most of the exchange controls were liberalised on 1 June 2005.

The Exchange Control Department (ECD) of the Bank of Papua New Guinea (the Central Bank) administers and enforces the exchange controls.

In regulating and monitoring the foreign exchange transactions, the Central Bank conducts thorough assessments of applications for remittance of funds or any transactions, dealing or matter that will have an implication of foreign exchange, before the exchange control approval is granted.