Dollar value affects cost: Fleming

By DALE LUMA
THE cost of imported items into the country will increase in the coming months if the US dollar does not regain strength against global currencies, says Bank South Pacific (BSP) group chief executive officer Robin Fleming.
This was in response to queries form The National following the strength of the kina against global currencies which was said to be depreciating according to several reports.
Fleming said the kina exchange rate was largely determined by the US dollar and the consequence of other currencies against the US dollar.
“The basket of currencies that determines the kina exchange rate is largely weighted to the US dollar and as a consequence if other currencies such as the Australian, Singapore and New Zealand dollar,” he said.
Fleming said if those currencies and the like appreciate against the US dollar, that would result in those currencies also becoming stronger than the kina.
“The US dollar has weakened against many of those currencies and this has seen the kina value for the Australian, Singapore, New Zealand dollar move downward more than the kina against the US dollar,” he said.
“This will increase the rate of imported inflation in coming months, unless the US dollar gains strength against global currencies.”
In regard to the Covid-19 and the increased number of positive cases and a possible lockdown in NCD, Fleming said: “NCD Governor Powes Parkop has stated that there will be no lock down in NCD and this is welcomed.
“Many businesses cannot afford any period of closure of their businesses or the informal market sector that drives consumption in many regional centres.
“Equally, businesses will be enforcing social distancing and wearing of masks in their business premises as well as using hand sanitisers upon entry.”