Both these banks’ parents have double “A” credit ratings by Standard and Poor’s. However, the financial institutions and companies most likely to be affected by the crisis are the superannuation funds and PNG dual-listed companies in overseas stock markets.
To prevent the disruptive effects of the flood of rupee liquidity on financial and banking sector stability, the Bank had to buy up the rupees by issuing its own instruments. The cost of these instruments was a multiple of the yield on the currencies purchased. By way of example, let us take US dollars: reserves in this currency yielded 0.3% on average in 2012.