International reserves at the end of the first quarter of 2017 totaled K5,626.1 million.
This is an improvement of K368.6 million at the end of 2016, according to the Mid Year Economic and Fiscal Outlook Report (MYEFO).
The report states that the increase in the level of reserves mainly reflects improved inflows from non-mineral export receipts, expected proceeds from external financing, receipts for royalty and development levy associated with the PNG LNG Project and concessional loan drawdowns from bilateral and multilateral sources.
The MYEFO reports that the Bank of PNG sees this reserve level as sufficient for just over six months of total import cover and over 12 months of non-mineral import covers.
The Bank of PNG has estimated that by the end of 2017, the level of foreign exchange reserves will increase to US$2,106.6 million (K6,617.5 million).