​PNG Kina Decline and Grey Listing Fears Raise Alarm : Nomane

​PNG Kina Decline and Grey Listing Fears Raise Alarm : Nomane

A fall of the Papua New Guinean Kina below US 20 cents is more than a financial statistic, Deputy Opposition Leader James Nomane says—it represents a tangible crisis for the economy and everyday citizens.

Nomane said families face rising costs of fuel, medicine, and imported food, while businesses struggle with higher operating expenses. “The nation expects transparent leadership and a credible plan to stabilise the economy,” he said.

He criticised the government for offering political statements rather than concrete economic measures. Nomane singled out Prime Minister James Marape and the Central Bank governor, describing their approach as confused and ineffective in addressing the currency devaluation and FATF grey-listing risks.

The deputy opposition leader warned against casual suggestions to replace the US dollar with the Chinese yuan in trade. He said PNG’s financial systems—including commodity pricing, sovereign debt, and correspondent banking—remain tied to USD-based mechanisms.

“Currency diversification requires detailed planning over several years. You cannot achieve it through rhetoric at a press briefing,” Nomane said.

He also raised concerns about potential FATF grey-listing, describing it as a serious warning that can increase transaction costs, limit capital flows, and affect investor confidence.

“The anticipation of grey listing alone can worsen foreign exchange shortages and discourage investment. Leaders should not treat reputational risk as a temporary inconvenience,” Nomane said.

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