By CHRISTOPHER YANDAWAI
THE average Papua New Guinea Kina value through exchange rate against all major currencies continues to depreciate.
As of today (Wednesday 24th February, 2021), the Bank of South Pacific (BSP) exchange rate indicates PNG Kina buying 0.3617 Australian Dollars, 0.2352 European Euro, 0.2850 US Dollars, 30.11 Japanese Yen, and 0.2033 British Pound respectively.
These values are much lower from what was reported by the Bank of Papua New Guinea in its March and June 2020 Quarterly Economic Bulletins (QEB) report.
The QEB report provides an overview of the economic and financial developments during the first two quarters of 2020 and some key developments since then.
According to the QEB report, as at 17th December, 2020, the kina depreciated against the British pound sterling by 2.4 percent to £0.2173, the euro by 2.2 percent to €0.2623, and both the Australian dollar and the Japanese yen by 2.0 percent to A$0.3938 and ¥29.8679, respectively.
Against the US dollar, the report further indicated that the Kina depreciated by 0.6 percent to US$0.2856.
BPNG Governor Loi Bakani said these currency movements resulted in the Trade Weighted Index (TWI) depreciating by 2.8 percent to 27.5.
The governor further explained the level of foreign exchange reserves from at the end of September 2020 to 24th December 2020.
“The level of foreign exchange reserves as at the end of September 2020 was K7, 135.6 (US$2,076.5) million.
As of 24th December 2020, the level of foreign exchange reserves increased to K9,314.88 (US$2,701.31) million, reflecting inflows of loans from the Australian Government (US$100 million), ADB (US$500 million) and dividend payments to the government from the Ok Tedi mine (US$113 million).”
Meanwhile, it is understood the devaluation of Kina against all major currencies is expected to remain relatively low into next month given the looming downfall of country’s economy presented by Covid-19 pandemic and its associated impacts and of course the halt of major projects in the country.