FX revenue up by 10.5pc: CEO


BANK South Pacific Financial Group Ltd (BSP) chief executive officer Robin Fleming says the country experienced high levels of foreign exchange (FX) currency in the country last December.
Fleming said this was due to strong commodity prices, end of year dividend payments and donor funds for various projects.
He said FX revenues rose by 10.5 per cent, an increase of K965 million from K9.21 billion in the September quarter to K10.175 billion in the December quarter of last year.
“FX market turnover rose by 7.4 per cent from a year earlier,” Fleming told The National.
“FX market turnover has risen by 9.8 per cent over the past six months, supported by strong commodity prices, in particular oil, copper, palm oil, coffee.
“Firmer commodity prices, combined with increased project specific, donor foreign currency inflows and end of year dividend payments offset the lost FX market inflows from the closure of the Porgera gold mine (Barrick FX inflows down 75 per cent),”Fleming said.
“The kina has been stable and unchanged against the US dollar for the past 14 months, however the pullback in the Australian and US dollars amid the Coronavirus (Covid-19) related weakness in the Australian economy, strength in the US economy helped strengthen the kina against the Australian dollar.
“The kina is likely to remain stable against the US dollar, while a steady Australian dollar will see improved stability in the kina to Australian dollar cross rate.”
Fleming said however that the strong FX inflows in December 2021 were expected to taper in the March quarter this year.
“December FX inflows have substantially reduced outstanding FX orders from high levels seen in November, and this is expected to reverse in January, February with post-Christmas restocking.”