THE economy has been doing well in the past 12 years in terms of economic growth, stable exchange rate and low inflation, according to the Bank of Papua New Guinea.
And the country will continue to do so based on strong economic fundamentals achieved so far, a meeting of the bank’s board in Madang was told yesterday.
Governor Loi Bakani projected good progress for the future.
The board in its first quarterly meeting noted that despite the high liquidity in the banking system, the kina exchange rate was stable, inflation was low and there was continued economic growth.
“In terms of future prospects, the board noted a good progress made by the PNG LNG project with plans for export of gas in the second half of this year,” Bakani said
“This will result in inflow of foreign exchange to support the kina in the medium term.
“However, we may not see an immediate impact on the kina exchange rate as expected.”
The board also noted the continued existence of illegal money schemes and the production of the illegal Bouganville kina.
Bakani warned the public to refrain from using those schemes and to be cautious of the illegal currency.
He was optimistic of a successful year.
“We now have a full board and I am optimistic that this will be a successful year for us.”
The three board members are Bart Philemon, Himson Waninara and Betty Palaso.
Philemon is now a member of Audit and Governance Committee while Waninara is part of the Remuneration Committee.
The other board members are John Leahy, Alex Tongayu, Dr Ken Ngangan, Father Denny Guka, Bakani and Deputy Governor Benny Popoitai.
The meeting in Madang reflected the level of confidence the board of the central bank have in relation to the province.
Bakani said the board normally met four times a year, two of which would be held outside Port Moresby. ONE PNG / The National