30/01/2026
Papua New Guineaβs economic history is a fascinating tale, often overlooked by many. At the heart of this story are four pivotal figures whose contributions shaped the financial landscape of the nation: Sir Julius Chan, Sir Mekere Morauta, Sir Henry ToRobert, and Harry Ritchie, the Treasurer. Together, this small but mighty team laid the foundation for PNGβs financial system.
Letβs start with Sir Julius Chan, a trailblazer who served as Minister for Finance. He was instrumental in the creation of the Central Bank of Papua New Guinea and the introduction of the Kina on April 19, 1975, just months before the country gained independence on September 16, 1975. Sir Julius celebrated April 19 each year as the birth of the national currency, always recognizing the contributions of his fellow pioneers, particularly Sir Mekere Morauta, Sir Henry ToRobert, and Harry Ritchie.
Elected to Parliament at the young age of 29 in 1968, Sir Julius was thrust into a pivotal role when Administrator Les Johnson appointed him Minister for Internal Finance. Suddenly, he was at the helm of government decision-making, navigating the turbulent waters of finance like a chief engineer steering the Ship of State while Sir Michael Somare served as its captain.
Back then, Papua New Guinea was still a United Nations Trust Territory, needing approval for self-government. Sir Julius confidently addressed the UN Trusteeship Council in New York City, asserting that PNG was ready to govern itself and soon to embrace independence. The world listened and agreed with his vision.
Upon returning to Port Moresby, Les Johnson impressed upon him the urgent need to build a solid economic foundation. This meant establishing a central bank and a commercial banking system. Sir Julius candidly admitted he wasnβt an expert in everything, but that never held him back.
On December 1, 1973, PNG became a self-governing territory, with independence fast approaching. Sir Julius rallied a focused team from the Department of Finance, which included Sir Mekere Morauta, Sir Henry ToRobert, and Harry Ritchie. Working tirelessly, this dedicated group drafted the Central Bank Act within a year and formed the PNG Banking Corporation, which took over from the Commonwealth Bank of Australia.
To cement PNG's reputation on the global stage, Sir Julius embarked on a vital journey with Harry Ritchie and Sir Mekere Morauta to London, Switzerland, and Germany. Their efforts yielded a monumental achievement: a five million Swiss franc loan from the Swiss Bank Corporation, signaling international trust in PNG. Remarkably, this loan was repaid in full within three years, a full two years ahead of schedule.
Launching a new currency before independence was one of the most formidable challenges in PNGβs history. Sir Julius established a Currency Working Group with Sir Henry ToRobert at the helm and Sir Mekere Morauta as a pivotal member. Despite fierce opposition and public skepticism, this determined team successfully launched the Kina on April 19, 1975βa momentous occasion that also welcomed the birth of Sir Juliusβs fourth child, aptly named Toea, after the sub-unit of the Kina.
Initially, both the Australian dollar and the Kina circulated, with many viewing the Australian dollar as the only βrealβ currency. However, six months later, Sir Julius made a bold move by raising the value of the Kina by 5 percent above the Australian dollar. Instantly, confidence surged. The people embraced their new currency, and the Australian dollars that had been hoarded began to flow back into the economy.
The journey wasn't without political challenges. Not everyone was in favor of a united nation. Papua Besena, led by Josephine Abaijah, campaigned for a separate Papua, while the Mataungan Association sought its own independence, stirring regional anxieties. Bougainville even declared independence. Yet, against all odds, the leaders managed to hold the country together.
Finally, on September 16, 1975, Papua New Guinea emerged as an independent nation. The Constitution of the Independent State of Papua New Guinea took effect, marking the end of colonial rule and the dawn of a sovereign nation.
Sir Julius was not done yet; he ensured that PNG would join crucial international institutions. Before independence, he was instrumental in securing membership in the Asian Development Bank. Within six months post-independence, PNG joined the International Monetary Fund (IMF) and the World Bank, with Sir Julius delivering the nationβs first address at a joint IMF-World Bank meeting in Manila on July 12, 1976.
In the following five years, Sir Julius wore many hatsβDeputy Prime Minister, Minister for Finance, and Minister for Primary Industryβoverseeing vital sectors like agriculture, livestock, forestry, and fisheries. His diverse roles underscored the significance of these industries to the nationβs growth and prosperity.
These remarkable figures and their relentless dedication helped shape Papua
