Photo Credit: EMTV Online
Increased exports are the greatest way to boost PNG's foreign exchange.
During the Certified Practising Accountants of PNG conference in Lae, Governor of the Bank of PNG, Loi Bakani, made this remark.
The Momase and Highlands area conference of the Certified Practising Accountants of PNG began on Thursday at the Lae International Hotel.
Bakani spoke on how the global economic crisis has affected PNG's foreign exchange market.
During question time, one audience member brought out Kina's 41% depreciation from 2012 to 2020.
Bakani reacted by claiming that export encouragement would have kept the Kina stable.
“For us now to be able to support the foreign exchange, it means for us as advisers to look at ways of minimizing our imports,” he replied.
“We encourage more exports. Minimizing imports will reduce the demand for foreign exchange, and that’s why the Kina can remain stable and if we have more foreign exchange coming in, the Kina will go up.”
PNG, according to Bakani, is an "import-dependent country." While the current inflation rate is 3.3 percent, he explained that the unpleasant truth can be seen on store shelves.
He feels that encouraging the agriculture sector and getting large projects like the Wafi-Golpu mine and Papua LNG off the ground are the best ways to alleviate PNG's financial load.
Reference:
Gware, Carmelita. Loop (21 August 2021). “Increase exports, stresses Bakani”.
