Inner-bank market expected to grow: Report

THE improved currency position in the country should also stimulate the inter-bank market and the rest of the financial sector, according to the “Final Budget Outcome” report for 2018.
The report was released on April 1 by Treasurer and Deputy Prime Minister Charles Abel.
Responding to that, the Oxford Business Group said in a statement the development of the financial sector, which was previously delayed because of the instability in the domestic securities and foreign exchange markets, “will now gather pace, as these markets have been stabilised”.
Robin Fleming, group chief executive officer of Bank South Pacific, told the Oxford Business Group that it might take some time before the benefits were felt.
“This year will remain difficult. But 2020 should see a big upturn,” Fleming said.
In a note issued on May 11, ratings agency Fitch cited the improved foreign currency supply as a key factor in its GDP growth projection, with the greater availability of foreign exchange set to boost private sector investment.
The agency maintained its positive outlook for PNG’s long-term growth prospects, forecasting that economic expansion will average 5.2 per cent over the coming decade.
“While the foreign currency shortage has weighed on many segments of the private sector, it has spurred activity among domestic manufacturers,” it said.