Government focuses on value of kina

THE Government has been taking remedial measures through policy and financial reforms to improve the value of the kina against the US dollar, Treasurer Charles Abel says.
Abel, also the deputy prime minister, told The National that the kina had depreciated from K1 to US$0.488 in 2012 to around US$0.291 yesterday.
“In recent times, there has actually been an appreciation against the Australian dollar and slight depreciation against the US dollar,” he said.
“In sustained times of forex shortage that we have been through, it is expected that there will be some decline as rate is determined by the market.
“Due to our financing efforts last year we brought in about US$1bil (K3.4bil) which bolstered Central Bank reserves. It enabled much relief in the market and reduced domestic short-term debts.
“We also have the Papua LNG coming which is a $US13billion (K43.8bil) construction project. Revenues from existing projects are improving and we have invested heavily in import replacement industries and supported through tariff reforms – dairy, poultry, vegetables, stock feed, rice, tuna processing and power generation.
“This means more kina kept onshore and job creation.”