footing

Papua New Guinea

Kina should

find sound

footing

The Papua New Guinea opposition claims the kina has continued to slip because the International Monetary Fund has maintained pressure on the Central Bank not to support the currency.

Commercial bank sources told Post Courier they supported the view, saying the IMF had advised strongly that the kina be allowed to find its actual level in the market.

The sources, however, said the kina would not be able to find a level as there are no buyers to balance the huge demand for foreign currencies by importers. They said the currency could only move down.

The kina slipped further during trading on April 4, when it closed at 82..25 US cents after opening trade at 82.40 cents.

Central Bank governor, Koiari Tarata, said the bank would not intervene to support the kina which should be left to find its own level.

Deputy Opposition leader Bill Skate said that they had been informed by Central Bank sources that the IMF wanted the currency to depreciate by a further 12 percent.

Skate said with prices of food and other goods rising constantly, the people were finding it more difficult to afford these.