Business council calls for price-competitive exports

By CLARISSA MOI
THE PNG Business Council has suggested that monetary policy makers should trade the Kina at the market value and devalue it to make exports more price-competitive.
Council executive director Douveri Henao said monetary policy makers and the Bank of PNG should consider the suggestion because of the current economic situation.
“Because of these extraordinary times, the Kina should trade at the market value and the Bank of PNG should not intervene in propping up the currency,” Henao said.
“(This is) largely because we need to make the Kina attractive for our exports.
“And because there is a major slowdown globally, and our Kina is still being propped up at the levels which are not attractive, it may make our exports also unattractive.
“We are of the position that the Kina to trade at the market value is definitely an option that should be considered by the Central Bank.”
Henao said the council’s suggestion to devalue the Kina should be also considered.
“(This is) largely because the whole world has come to a point where they are not trading in normal conditions.
“And our Kina should also not be trading in normal conditions.”
He said because these were not normal times, “everyone around the world is also making massive monetary adjustments”.
“Whether it’s quantitative easing or whether it’s devaluing currencies, there’s a lot of energy put into making the currency more effective, more trade-able and more attractive.”