The governor of the Bank of Papua New Guinea, Loi Bakani, says that the shortage of foreign exchange is ‘an issue based on supply and demand of foreign currency for kina.’ One way to increase demand for a nation’s currency is to modernise the bond markets. A World Bank report has looked at some options.
Why modernising Papua New Guinea’s bond markets may help solve the foreign exchange shortage
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26 Sep 2016 by 1 Comment
Top bankers set the record straight on Papua New Guinea’s foreign exchange shortage
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31 Aug 2016 by 2 Comments
Papua New Guinea’s top two bankers, Loi Bakani, Governor of the Bank of Papua New Guinea and Robin Fleming, Chief Executive of Bank South Pacific, have asserted that the kina is not ‘controlled’. The shortage of foreign exchange is rather due to supply demand imbalances—but there is light at the end of the tunnel.
A weaker kina may make sovereign bond raising less risky, says economist
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27 Jul 2016 by 4 Comments
The Papua New Guinea authorities should allow the currency to fall to its market level to make foreign bond raisings less risky says economist Rohan Fox. He tells Business Advantage PNG that domestic banks are reaching the limits of their capacity to take on government debt, which is increasing the pressure to raise capital internationally.
Moody’s bullish on longer term future of Papua New Guinea economy
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30 May 2016 by 3 Comments
Moody’s recently downgraded its sovereign rating on Papua New Guinea to B2 from B1. But Christian de Guzman, a Senior Analyst in the Sovereign Risk Group for Moody’s Singapore tells Business Advantage PNG that the agency is ‘quite confident’ about the overall economy’s prospects over the medium-term.
Papua New Guinea’s central bank ‘determined’ to get foreign currency in, says Bakani
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18 May 2016 by Leave a Comment
The Governor of the Bank of Papua New Guinea, Loi Bakani, told this week’s Australia–Papua New Guinea Business Forum in Cairns that the bank is ‘determined’ to obtain more foreign currency ‘as soon as possible’ to address the backlog in foreign exchange demand. However, he criticised claims that PNG’s foreign exchange problem could be solved by allowing a free float of the kina, reports David James.
Commodity price falls creating currency volatility, says analyst
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12 May 2016 by Leave a Comment
The kina has fallen in value this year, but Papua New Guinea’s dependence on commodity exports means that it can be expected to fall further, says Rohan Fox, Lecturer and Research Fellow at the University of Papua New Guinea’s Division of Economics. He tells Business Advantage PNG that the country faces a difficult task managing the impact of sharp fluctuations in commodity prices.
Papua New Guinea kina set to fall further, say analysts
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6 Apr 2016 by 2 Comments
Papua New Guinea’s currency, the kina, has fallen over the last year; many are predicting it will go lower. Business Advantage PNG talks exclusively to two analysts about where the currency is headed and how it will affect business conditions.
Easing of rise in US dollar will offer respite to Pacific economies, says ANZ
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27 Jan 2016 by
The current rise in the US dollar is likely to flatten in 2016, offering respite to Pacific curencies, according to ANZ economists, Glenn Maguire and Eugin Lee.
‘One building at a time’: Papua New Guinea’s K K Kingston prepares for next wave after consolidation
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30 Jun 2015 by Leave a Comment
For the last 18 months, leading Lae manufacturer K K Kingston has been consolidating and restructuring. CEO Michael Kingston talks to Business Advantage PNG about the company’s strategy, his optimism for the future, and the issues facing businesses in Papua New Guinea.
Poll reveals Papua New Guinea business divided on impact of stronger kina
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18 Jun 2014 by Leave a Comment
While Papua New Guinea-related businesses are divided on the impact of a stronger kina, all agree it will have some effect on their business, according to Business Advantage PNG’s poll.
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