Exporters told to make use of price

EXPORTERS should take advantage of the favourable international prices at this time when the global economy is impacted badly by the Covid-19 pandemic, says Bank of PNG governor Loi Bakani.
Bakani said the prices of minerals had increased.
“Mineral prices increased, with those for copper and nickel driven by a pick-up in growth in China,” he said in the bank’s March-June 2020 quarterly economic bulletin released yesterday.
“Precious metal increased by 16.5 per cent, with the price of gold reflecting its role as a safe haven investment during the Covid-19 pandemic and also due to global monetary easing.”
The latest international commodity price data published by the World Bank last September showed that prices for energy, non-energy and precious metals had increased.
“Energy prices rose by 33.9 per cent, driven by cuts in crude oil production by members of the organisation of the petroleum exporting countries (Opec),” he said.
“Non-energy prices increased by 9.6 per cent, with higher prices for most agricultural commodities, including cocoa, coffee, tea and palm oil.
“Given these unprecedented times, PNG exporters should capitalise on these favourable international prices.”
The country’s foreign exchange reserves is K9.31 billion as at Dec 24, 2020, an increase from K7.13 billion at the end of September.
The increase was a reflection of loans and dividend payments, such as loans from the Australian government (US$100 million), Asian Development Bank (US$500 million) and dividend payments to the Government from Ok Tedi (US$113 million).”
As at Dec 17, 2020, the average daily kina exchange rate depreciated against all major currencies.
“The kina depreciated against the British pound sterling by 2.4 per cent, the euro by 2.2 per cent, and both Australian dollar and Japanese yen by 2 per cent,” Bakani said. “Against the US dollar, it depreciated by 0.6 per cent.”