September was another tough month for availability of foreign exchange in Papua New Guinea, but central bank Acting Governor Elizabeth Genia has moved to reassure business that the bank is committed to supporting the kina as it adjusts to a lower level against the US dollar. She’s also flagging better times ahead on forex.
Westpac’s Senior Economist Justin Smirk has been studying Papua New Guinea’s economy for over 20 years. He recently provided the 2023 Business Advantage Investment Conference with six things businesses should understand about PNG’s economy, as we wait for the next wave of resources investment to begin.
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.
The sharp fall of Papua New Guinea’s currency, the kina, over the past few months is a cause for concern, with Manufacturers Council of PNG CEO Chey Scovell describing it as a ‘real kick in the guts’ for local manufacturers.
The next six months is a ‘highly vulnerable period’, according to the latest market outlook from Papua New Guinea finance company and stockbroker, Kina Securities Ltd.