1.2  Monetary policy stance  The main issue that the Central Bank is confronted with is the increasing level of liquidity in the banking system in recent years, caused by the foreign exchange reserve build-up related largely to dollar-denominated mineral tax earnings, high export earnings, inflows related to the PNG LNG project and other private foreign direct investments.
In addition, through its participation in global forums, the SARB contributed to the strengthening of the global financial safety net.