BPNG gives banks K206mil in FX

THE Central Bank makes available K206 million (US$60 million) in foreign exchange currency to commercial banks each month, says acting governor Benny Popoitai.
He assured companies in the country that neither the Central Bank nor the Government would discriminate against businesses when it came to addressing foreign exchange issues.
Popoitai told The National yesterday that companies should make us of the K206 million in foreign exchange currency provided to commercial banks every month.
He was responding to a statement by Puma Energy Ltd country manager Hulala Tokome that they would limit the supply of fuel to retail, aviation and commercial customers due to the lack of foreign exchange currency, to enable them to import crude oil.
Tokome said since October last year, Puma Energy had been discussing with various stakeholders, including the Bank of PNG and the Government, its inability to convert local currency into USD which was affecting its ability to import crude oil.
“Given the criticality of the situation and product prices reaching overnight US$115 (about K395) and climbing, failure to secure sufficient USD will mean Puma Energy has to limit the supply of fuel to our retail, aviation and commercial customers,” Tokome said.
“The issue is being escalated due to higher oil prices, which may force Puma to enact more stringent restrictions more quickly if additional FX is not secured.
“These measures, however regrettable, are unavoidable without any action from the Bank of PNG. (It is) likely to cause significant fuel shortages and impact the operations of our retail, commercial and aviation customers.”
Popoitai said Puma as a private company could source foreign exchange from the commercial banks which the Central Bank was providing on a monthly basis.
He said he was yet to be consulted on the matter.
“I have no idea (about Puma’s) current situation.
“Puma is a private company and private enterprises source foreign exchange from the commercial banks,” Popoitai said.
“We supply US$60 million to commercial banks every month which private enterprises can source from.
“We supply the domestic market and take care of government needs.”