Ongoing forex shortage hits businesses hard

By MARK HAIHUIE
BUSINESSES in Port Moresby have seen a drop in sales by about 30 per cent since last year due to the ongoing foreign exchange shortage.
Port Moresby Chamber of Commerce and Industry acting president Rio Fiocco said the shortage and delays in orders had “severely impacted” businesses.
“On average, most businesses in Port Moresby have seen their sales drop by about 30 per cent compared to last year,” he said.
“The lack of foreign exchange in the market has severely impacted businesses not just in the capital city but all across the country.
“One of the banks has just told me recently that the delay in getting foreign exchange can be up to 12 weeks. Another bank told me that it could be longer than that.”
Fiocco said that some sectors were hit hard by the shortage. He said the seasonal flows from cash crops were not enough to ease the situation as before.
“The shortage of foreign exchange affects everyone including manufacturers who need to bring in raw material from which to make the products. The delay will cost them a lot,” he said.
“Then there are those in the motor vehicles industry who need to bring in spare parts. The public will have to wait as it takes them about three months to get in parts.
“They can’t do the job in a timely fashion and it causes losses. The situation has been tough all year.”