PM James Marape, left, and Chinese President Xi Jinping. Photo: PNG Office of the Prime Minister
One of the matters on the table for Papua New Guinea's prime minister James Marape during his visit to Beijing is establishing for both countries to trade in their own currencies.
Currently, PNG requires American dollars but as its access to the China market grows, Port Moresby is hoping a common currency arrangement can be made.
These days PNG is exporting about 13 billion kina, or about $US3.5 billion, of goods to China annually, with exports exceeding imports.
China buys minerals and gas from PNG but Marape has endeavoured to raise interest in food, tourism and carbon credits.
RNZ Pacific PNG correspondent Scott Waide said a common currency settlement arrangement would be highly significant.
"Now that [common currency] needs central bank arrangement," Waide said.
"How that's going to turn out with the global pressures on the US currency and the BRICS situation, this will be an interesting arrangement between Papua New Guinea and China - trading in our own currencies."
The prime minister's office said PNG is preparing for the China Development Bank to open a branch in PNG, while Port Moresby has also signed up to become a member of the China controlled Asia Infrastructure Investment Bank.
There have also memorandums signed, including an agreement on more student scholarships for study at Chinese universities, an aid grant of 50 million kina, and the approval of bio-security clearance for coffee and cocoa exports.
