Use funds abroad, Bank tells firms

  THE Bank of Papua New Guinea has advised companies who have funds parked overseas to use them to meet their overseas purchase obligations.

Governor Loi Bakani said in the bank’s June quarter bulletin that the bank was doing all it could to support the market.

He said it would be wise for companies not to depend too much on Bank of PNG for foreign currency. “The situation regarding the shortage of foreign currency and the backlog of unfilled foreign currency orders continues to be addressed by the bank and authorised foreign exchange dealers,” Bakani said. 

He said BPNG continued to provide temporary relief through its intervention of foreign currency to meet short-term import needs. He has been stressing that the situation in the foreign exchange market had prevailed for a long period now and some adjustments in the economy should have taken place. 

“This includes importers either reducing imports or seeking alternative source of imports, and exporters taking advantage of the depreciation of kina on their incomes,” he said. 

“Such adjustment due are necessary for the foreign exchange market to return to normalcy.”

Prime Minister Peter O’Neill mentioned in Parliament last week that the Government had signed instruments for a sovereign bond (reportedly worth K2 billion) to replenish the depleting foreign currency.