Prime Minister Peter O’Neill has backed announcements by Bank of Papua New GuineaGovernor Loi Bekani thatthe Kina should stabilize inthe coming weeks.
Alarm bells rang throughoutthe business community when news ofthe depreciating kina was made public.
More fear was created when it was predicted to continue for the next 8 months.
Today,the Prime Ministersaid steps were being taken bythe Bank oPNG to addressthe situation.
Mr Bekani sain PNG operated in a floating exchange rate regime, wherethe kina exchange rate against ther currencies, was determined by how much foreign exchange we bring intPNG, andthe demand for foreign currency.
One example isthe construction phase ofthPNG LNG Project which saw a number of expatriates travel in. This improverPNG’s kina value.
Mr Bekani saidthe kina is still very high andthere is nothing to worry about.
Prime Minister O’Neill said he had confidence in Mr Bekani andthe Central Bank in addressingthe problem.
O’Neill is confidentthe kina will be stabilized.
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