As a thinly traded currency, the kina has been protected from some of the volatility affecting world markets in the wake of COVID-19, but that presents its own set of problems.
currency exchange
The Papua New Guinea government has released its Mid-Year Economic and Fiscal Outlook Report. GDP growth is expected to be weak, tax revenue is lower than expected and public debt is rising above the legislated limit.
As Papua New Guinea business gets back to work for a new year, Business Advantage PNG looks ahead to consider what 2016 may bring.
The Bank of Papua New Guinea this week made a surprising move to support a weakening currency, at the same time acting to restrict the margins being made by the country’s foreign exchange dealers.
Government ministers and influential economic analysts have welcomed the recent fall in the value of the kina, saying it will boost demand for exports.
The revelation last week—via an HSBC report—that the Australian dollar is the most overvalued in the world makes you wonder about the PNG kina.
Honeymoon over for PNG Government?