Central Bank records K500mil surplus

There was an overall balance of payments surplus of K529 million for the nine months to last September, compared to a surplus of K327 million in the corresponding nine months of the previous year.
Bank of PNG Governor Loi Bakani said in its Sept Quarter 2018 Economic Bulletin that surplus in the current account more than offset a deficit in the capital and financial account.
“The current account recorded a surplus of K14,167 million for the nine months to September 2018, compared to a surplus of K13,055 million in the corresponding period of 2017,” he said.
“This was due to a higher trade account surplus and net transfer receipts, which more than offset net service and income payments.”
Bakani said the trade surplus was due to high export receipts of LNG, while surplus in the transfer account was due to higher gifts and grants, and tax receipts.
“The capital and financial account recorded a deficit of K13,636 million in nine months to September 2018, compared to K12,725 million in the corresponding nine months of 2017,” he said.
“This resulted from outflows of direct and other investments reflecting equity withdrawals and build-up in foreign currency account balances of mining, oil and LNG companies covered which more than offset transfers by donor agencies for project financing.”