PNG kina

“There has been much speculation on the value of the Kina. What are the current views internationally and domestically?

“How do we measure the value of the Kina?

“These are all important questions that are being considered by the Marape-Rosso Government as it prepares a roadmap for foreign exchange and monetary policy reforms by August. 

“However, until we get some more numbers on winners and losers from any changes, we are not planning to include any specific figures into the August policy roadmap” stated the Treasurer.

Westpac senior economist and director, Justin Smirk, said this during the Port Moresby Chamber of Commerce and Industry Business Breakfast in Port Moresby today.

Smirk said as global commodity prices remain stagnant and commodity currencies weakening, the likely effect would be the same for PNG.

He said PNG should now shift its focus to the essential areas of revenue generation and growth.

“Focus on what’s important to you and what you can do,” he told the business community.

Cameron Bagrie, ANZ’s New Zealand Chief Economist says in spite of the pressures on the Kina, there are some positive economic signs with forecasts that the Kina will continue to ease until mid-2018.

In an interview with Business Advantage PNG, Bagrie said PNG’s current account has gone from being in a deficit of over 50 per cent of GDP in 2012, to a surplus now.

He adds there is more stability in commodity prices, which has eased pressure on the currency in the short term.