According to the Bank of PNG quarterly economic bulletin, kina has depreciated against the pound sterling by 3.3 per cent to K1 (£0.2341), the yen by 1.9 per cent to K1 (¥35.1235) and the US dollar by 0.8 percent to K1 (US$0.3113).
Against the Australian dollar and the euro, it appreciated by 1.8 per cent to K1 (A$0.4050) and 0.1 per cent to K1 (€0.2676).
These currency movements resulted in the Trade Weighted Index, appreciating by 0.04 per cent to 30.0082 in the December quarter of 2017.
Meanwhile, the Central Bank Governor Loi Bakani said up to November prices for some of Papua New Guinea’s export commodities continued to improve.
Mr Bakani said prices for crude oil, nickel, cocoa and copper increased by 12.4 per cent, 6.7 percent, 6.5 per cent and 3.8 per cent, respectively while those for Liquefied Natural Gas (LNG), coffee, gold and tea declined by 3.9 per cent, 3.7 per cent, 2.4 per cent and 0.9 per cent.
He said there was an increase in foreign exchange inflows from export proceeds.
The National Government’s 2018 Budget has a planned expenditure of K14, 717.9 million, and revenue of K12, 731.0 million, giving a fiscal deficit of K1, 987.2 million or 2.48 per cent of gross domestic product.
“The deficit will be financed from both external and domestic sources of K1,613.4 million and K373.8 million.”
Mr Bakani said despite the high levels of global liquidity, this is good for the country and has been reflected in lower annual headline inflation outcomes since September 2016, and for the past three quarters of 2017.
“Given these developments Bank of PNG will continue to monitor key economic variables to ensure that macroeconomic and price stability is maintained.
This remains the primary focus of the Central Bank,” he said. Statement