Digital alternatives adopted as private sector cheques phase out

“As of 30th of June 2024, BSP Group has successfully phased out private sector cheques from our banking system, aligning with Bank of PNG’s directive,” says BSP Group CEO Mark Robinson.

Mr Robinson said BPNG’s decision discontinues the use of cheque payments among private sector banking service users; however, cheques issued by the public sector and state-owned enterprises will remain valid and accepted.

“To ensure a smooth transition for our private sector customers, BSP has implemented proactive measures, including ongoing reminders and awareness campaigns promoting the adoption of digital payment alternatives,” he added when giving his insights on BSP’s June quarter 2024 economic and market view.

As for BSP’s Pacific Markets, key global trends have emerged in the economic landscape. The Cook Islands have experienced a tourism surge driven by increased direct flights from Australia and New Zealand.

In Fiji, the Reserve Bank has adjusted its economic growth forecast from 3.4% to 2.8%, citing the impact of high inflation on consumer spending. Meanwhile, Samoa has seen a notable decrease in headline inflation, dropping to 6.6% from 12.0% in June 2023, with inward remittances and tourism growth supporting consumption and economic growth.

Despite climate and severe weather challenges, Vanuatu remains optimistic, projecting economic growth rates of 3.1% in 2024 and 3.6% in 2025, according to the Asian Development Bank, Asian Development Outlook April 2024.