TISA Bank’s launch of direct Chinese yuan (CNY) settlement in early 2026 marks a significant milestone for Papua New Guinea’s financial landscape.
The introduction of direct CNY settlement strengthens bilateral economic relations and supports Papua New Guinea’s fiscal stability. The move also aligns with broader diplomatic efforts to deepen ties with China, PNG’s largest trading partner.
TISA Group Chief Executive Officer Michael Koisen said direct access to the yuan creates a more efficient “financial bridge” between the two countries, delivering benefits across both the public and private sectors.
According to Mr Koisen, the initiative will help reduce domestic demand for the US dollar, easing pressure on the Bank of Papua New Guinea’s foreign reserves. More efficient currency settlement could also lower the cost of government-backed infrastructure projects financed by Chinese entities by reducing exchange-rate volatility and intermediary fees.
For major players in the mining, construction and retail sectors, direct access to the yuan is expected to improve operational efficiency and stability.
“Direct settlement speeds up the procurement process, and companies can pay Chinese suppliers directly in kina, with TISA Bank debiting their PGK accounts locally and settling the payment in Chinese yuan directly to suppliers in China, bypassing the multi-day delays often associated with converting kina to USD and then to CNY,” Mr Koisen said.
Large PNG importers may also be able to negotiate better pricing with Chinese suppliers by paying directly in yuan, removing exchange-rate risks and conversion costs for Chinese exporters.
Through TISA Bank, businesses can now execute trade payments directly in Chinese yuan using competitive exchange rates.
The SME sector, which is often disproportionately affected by foreign exchange shortages, is also expected to benefit from the initiative. Small businesses will no longer need to absorb double conversion costs from PGK to USD and then to CNY, making the procurement of inventory, tools and machinery more affordable.
In addition, SMEs that previously struggled to secure US dollar allocations from larger commercial banks can now use yuan for trade transactions, helping to keep supply chains uninterrupted.
Mr Koisen added that many PNG SMEs source goods from Chinese platforms and wholesalers, and direct CNY settlement would make these smaller transactions simpler and more predictable in terms of final cost.
All transactions are processed through established SWIFT messaging channels, providing assurance around anti-money laundering and counter-terrorism financing controls, as well as regulatory oversight.
By facilitating this direct settlement link, TISA Bank is not simply introducing a new payment capability; it is also helping to build a more resilient trade ecosystem that supports broader goals of financial inclusion and national economic growth.
