Liquidity conditions have emerged as a major source of risk for the PNG economy, as the central bank governor reveals he spent US$570.9 million (K1.48 billion) to support the kina last year.
Bank of Papua New Guinea (BPNG)
The Governor of the Bank of Papua New Guinea says his recent directives on dealing in the kina are not meant to frighten or scare the market, but to help address the imbalance in the foreign exchange market and restore order.
Companies and dealers ‘adversely affected’ foreign exchange availability in Papua New Guinea, Bougainville Government considers large-scale mining, and Asian Development Bank commits K1.7 billion to PNG. Your weekly digest of the latest business news.
Papua New Guinea’s central bank has moved to stop offshore foreign banks, which don’t operate in PNG, from foreign exchange trading in the Kina.
Sharing nearly 500,000 clients, Papua New Guinea’s micro finance industry is expanding its reach, its numbers and its services. Business Advantage PNG looks at what the industry is offering.
State Solicitor refuses approval for purchase of Motukea island land for port relocation, Confusion over Ok Tedi compensation payments, report says PNG state-owned enterprises under performing compared to Pacific counterparts. Your weekly digest of the latest business news.
The Papua New Guinea economy is on the edge of a ‘slippery slope’, if the Bank of PNG finances government debt and continues to fix the exchange rate at too high a rate. Former Australian Treasury advisor Paul Flanagan says compounding the problems are rising inflation, falling foreign exchange reserves, and declining private sector credit growth.
Restricting the margins at which the kina can be traded against the US dollar has had little positive effect, with some companies struggling to pay bills, as the central bank reportedly restricts the purchase of US currency, Manufacturers Council of Papua New Guinea CEO Chey Scovell tells Business Advantage PNG.
Central bank governor says economic stability dependent on kina pegging, Panguna landowners support re-opening of gold and copper mine, and 2015 Budget may be a deficit budget with ‘no significant strategic changes’. Your weekly digest of the latest business news.
The PNG Government plans to rebuild the country’s military barracks by 2017, InterOil halts drilling at Wahoo-1, and Bank of South Pacific plans share buyback. Your weekly digest of the latest business news.