BI, PNG Bank Cooperate on Currency Use in Border Areas

Yogyakarta (Antara) - Bank Indonesia (BI) and its counterpart from Papua New Guinea (PNG) have signed a memorandum of understanding on the use of currencies in the border areas between the two countries in Papua. The initial agreement to arrange the use of currencies in Papua borders was signed on Wednesday here by Deputy Governor of BI Ronald Waas and deputy governor of PNG central bank Benny Popoitai. "The main purpose is certainly to facilitate economic activities in the border area between Indonesia and PNG," Ronald said after the signing of the agreement. Under the agreement, more places for exchange of currencies would be opened along the border areas, he said, adding, currently there are only such places in Papua -- in the villages of Sckow and Sota. "I think there are many more needed to accommodate the requirement of the border people," he said. Currently the people in the frontier areas of the two countries are in difficulty to make a deal with buyers or sellers from across the borders. "Near Jayapura, there is a market where many people from PNG come to buy goods. They have to exchange their Kina with Indonesian rupiah," he said. Generally Indonesian traders sell handicraft products such as batik garment and furniture in the border area, he said. Ronald also said about the possibility of the two countries opening banks in the border areas to facilitate traders. (*)