SYDNEY, June 4 (Reuters) - The Papua New Guinea kina PGK= jumped 18 percent on Wednesday after traders said the South Pacific country had introduced new trading band arrangements following a steep and prolonged fall in the currency.

"Authorised Foreign Exchange Dealers in PNG to quote Kina against United States Dollar within a band of 150 basis points; 75 basis points either side of the trading band reference rate currently $0.4130," one authorised FX dealer said in a note, obtained by Reuters.

The kina last traded at $0.4055, according to Thomson Reuters data, the bottom of the allowed band.

The Bank of Papua New Guinea was not immediately available for comment. Bank South Pacific, a PNG commercial bank, carried notice of the instructions on its website. http://www.bsp.com.pg/

(Reporting by Brent Hansen and Lincoln Feast; Editing by Paul Tait)

((Lincoln.Feast@thomsonreuters.com)(+61 2 9373 1826)(Reuters Messaging: lincoln.feast.thomsonreuters.com@reuters.net))

Keywords: PAPUA FOREX/BAND