Weak kina could help workers, farmers

 A FURTHER slide of the kina would further help the local cash crop farmers, workers and businesses against competition in the world market, World Bank country economist Tim Bulman said.

Bulman said the continuously weakening kina would also support government revenues and royalty payments. 

“It would reduce the costs of operating in PNG compared with other countries, which could help make it worthwhile for PNG and international investors to develop businesses and create jobs here,” he added. 

Bank of Papua New Guinea (BPNG) revealed in the September 2013 Quarterly Economic Bulletin (QEB), that the kina had depreciated against most major currencies.

According to an overview provided by Governor Loi Bakani, the local currency weakened against pound sterling by 9.7%, the Australian dollar by 7.4%, euro by 8.2%, yen by 4.9% and the US dollar by 5.7%. 

“The depreciation against the major currencies is attributed to high import demand and lower foreign exchange inflows,” Bakani had said.