BSP: FX market improved

FOREIGN exchange (FX) market liquidity improved in the June quarter of this year, with the turnover rising by 19.7 per cent (K1.586 billion), Bank South Pacific Financial Group Ltd (BFL) says.
According to its Pacific Economic and Market Insights Quarter 2 report, FX market liquidity improved in the June quarter 2021, with market turnover rising 23.9 per cent in June and 19.7 per cent in the June quarter 2021.
Group general manager for treasury Rohan George said June’s rise of 23.9 per cent was K731 million in market turnover and the 19.7 per cent in the June quarter was K1.586 billion in market turnover.
“FX inflows for the first half of 2021 were up 1.8 per cent from one year ago,” he said.
“Reduced foreign currency supplied to the market from Barrick (operator of Porgera gold mine in Enga) was offset by firmer copper and palm oil prices, combined with increased project specific and donor foreign currency inflows.”
The report said the kina was likely to remain stable against the US dollar, while a steady Australian dollar would see improved stability in the kina/Australian dollar cross rate.
“FX market turnover may well fall in the September quarter from the high levels seen mid-year,” George said.
“Outstanding FX orders reduced by 60 per cent over the June quarter, due to strong foreign currency inflows, however, as FX inflows taper in July, August outstanding FX orders build up again,” George said.