FX falls by 55 per cent: Fleming

By DALE LUMA
FOREIGN exchange (FX) orders with the Bank South Pacific (BSP) Financial Group Ltd have fallen by 55 per cent in the past three months, says chief executive officer Robin Fleming.
Fleming said this was assisted by a record June FX inflows but remain similar to levels seen 12 months ago.
Fleming said the FX market turnover in the June quarter rose by 16 per cent from the March quarter, and was 20 per cent higher than 12 months ago, supported by strong commodity prices.
“This is in particular oil, copper, palm oil (and) coffee,” he told The National.
“Firmer commodity prices, offset the lost FX market inflows from the closure of the Porgera gold mine (Barrick FX inflows down 75 per cent).”
Fleming said the PNG Kina was likely to remain stable against the US dollar and strengthen further against other currencies, as the US dollar continued its momentum, benefitting from flight of capital domestically and globally into safe haven assets.
Total outstanding foreign exchange orders with BSP was previously reported to be around K120 million higher than at the same time last year.
The bank had seen a buildup in foreign exchange orders over the past few months due to a combination of factors.
“The increase in energy prices globally has contributed to this with fuel related orders increasing as oil prices increase on the back of supply issues related to the Russia-Ukraine conflict,” Fleming previously told The National.
“Additionally, business activity in PNG has also been positive in recent months, some of which is election-related and some of which is in anticipation of future extraction industry projects, as well as higher agriculture commodity prices stimulating consumer demand, and this also contributes to more demand for foreign exchange as imports increase.”