Intervention by the Bank of PNG to introduce more than US$100 million into the market has assisted commercial banks to reduce the backlog of foreign exchange orders.
Bank South Pacific says since the introduction of more than K300 million into the market by the Central Bank, they have reduced around K150 million in backlog orders.
Group CEO chairman, Robin Fleming, said while the backlog hasn’t changed much, the total outstanding has improved.
“During October it actually reduced by the best part of a K150 million when the bank of PNG put the full US$$100 million that was indicated in the 100 day plan.
“That full US$100m came in October, which has assisted to reduce the backlog for all commercial bank customers by almost K300 million,” Fleming said.
Fleming said clearance for smaller customers would take a day for transactions between K10,000 to K25,000 while larger transactions could take weeks.
“If they come in for a retail transaction supported by proper exchange control support, whether it's tax clearance, document sale, (they) get it the same day for the smaller baby transactions.
“Larger (customers) depends on the priority; it might take them one or two weeks. Some of the smaller ones or other customers may be longer... probably up to 6 weeks. (It) just depends on the urgency of which particular sector and whether they’ve been a longer standing BSP customer or not, and a number of criteria we apply,” he said.