Kina value depreciating against all major currencies: BPNG


AS of March 8 the average daily kina exchange rate depreciated against all major currencies except the Japanese yen, according to Bank of PNG (BPNG).
BPNG in its quarterly economic bulletin for September 2020 quarter, noted that the kina depreciated against the Australian dollar by 8.1 per cent, the British pound sterling by 7.5 per cent, the Euro by 2.8 per cent, and the US dollar by 0.9 per cent, whilst it appreciated against the Japanese yen by 1.3 per cent.
BPNG governor Loi Bakani said that the level of foreign exchange reserves at the end of last December was K9.5 billion (US$2.7billion).
“As of March 5, 2021, the level of foreign exchange reserves decreased to K8.46 billion (US$2.41 billion), reflecting debt service payments for the Government and intervention by the Central Bank in the foreign exchange market,” he said.
Meanwhile, it was also highlighted that the global economy showed signs of recovery in the December quarter of last year.
However, the second wave of the Covid-19 pandemic with the new strain started to affect major economies, derailing the recovery.
“As a result, most countries have not completely opened up their borders to the movement of people,” he said.
“The development and trial of Covid-19 vaccines that continued into the last quarter of 2020 provided some level of confidence for the global market and the world economy.
“In its January world economic outlook (WEO) update, the International Monetary Fund, projected the world economy to contract by 3.5 per cent in 2020 from its earlier projection of a decline of 4.4 per cent in the October WEO.
“For 2021, recovery has been upgraded with a growth rate of 5.5 per cent, reflecting the trial and introduction of Covid-19 vaccines.”