Papua New Guinea Kina (PGK) in 2025: Current Value, History, and Forex Insights

Katrina Ávila Munichiello is a seasoned editor, writer, and fact-checker with over fourteen years of expertise in print and digital media.

What Is the Papua New Guinea Kina (PGK)?

The Papua New Guinea kina (PGK) is the official currency of Papua New Guinea, symbolized by "K" when denoting amounts, such as 1,000K. It is internationally recognized with the currency code PGK in foreign exchange markets.

Introduced in 1975, the kina replaced the Australian dollar (AUD) and is managed by the Bank of Papua New Guinea, the country’s central bank. As of 2024, the kina continues to play a critical role in the nation's financial system.

Key Highlights

• The PGK is Papua New Guinea’s national currency since 1975.
• It replaced the Australian dollar to establish monetary independence.
• The name "kina" originates from a traditional shell used historically as currency.
• Papua New Guinea’s economy remains largely driven by agriculture and commodity exports.

Understanding How the PGK Works

The kina is subdivided into 100 smaller units called "toea." When introduced, six coin denominations were minted: 1, 2, 5, 10, 20 toea, and 1 kina. The smallest coins, 1 and 2 toea, were phased out in 2007 due to limited usage.

Initially, banknotes were issued in 2, 5, and 10 kina denominations, with higher values such as 20 kina introduced in 1977, followed by 50 and 100 kina notes in 1990 and 2005 respectively.

The currency design celebrates Papua New Guinea’s rich cultural heritage and biodiversity, featuring iconic symbols like the Bird of Paradise and national landmarks such as the Parliament building, alongside portraits of prominent leaders like Prime Minister Michael Somare.

Economic Context

Despite abundant natural resources, Papua New Guinea faces challenges in infrastructure development due to its rugged terrain, limiting large-scale industrial growth. Consequently, a significant portion of the population depends on subsistence farming.

PGK in Forex Markets: A 2024 Perspective

The PGK is a floating currency with its exchange rate influenced by global supply and demand dynamics. Over the last decade, the kina has gradually depreciated against the U.S. dollar, moving from approximately 2.50 PGK per USD in 2009 to around 3.50 PGK per USD by 2020, with ongoing fluctuations into 2024.

Inflation in Papua New Guinea has averaged near 5.5% annually between 2009 and 2019, while GDP per capita growth remained modest at just under 3% per year during the same period.

Today, the economy relies heavily on exports of gold, copper, coffee, oil, and liquefied natural gas (LNG), with agriculture contributing about 20% to the GDP. Despite resource wealth, poverty remains widespread, with a significant share of the population living below the international poverty line.

Understanding the PGK’s behavior in currency markets is essential for investors and businesses engaging with Papua New Guinea’s economy in 2024 and beyond.

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