Kina value up against US dollar

FOR the first time since April, Papua New Guinea's currency kina, has increased its value against the US dollar, The National reports.

On average, K1 could now buy US$0.43, compared to previous months' daily exchange rates.

Central Bank Governor Loi Bakani explained in the bank's first quarter report that the kina's average daily exchange rates have continued to appreciate against the US dollar, UK pound sterling and the euro, but have been depreciating against the Australian dollar and Japanese yen.

By June 27, the local currency had reached a high of US$0.4330 and A$0.4154.

This means the kina had appreciated against the US dollar by 2.9% to 0.3895, pound sterling by 5.0% to .02419, and euro by 11.2% to 0.2753.

It depreciated against the Australian dollar by 6.9% to 0.3770 and Japanese yen by 5.6% to 32.2400.

The report said that the increase of the kina value was due to the high inflow of foreign exchange, associated with the mineral tax receipts for the government and high commodity export earnings.

This was brought on by the high prices set by the international demand for mineral and agricultural exports, resulting in 21.5% increase in the weighted average kina price of mineral exports.

The weighted average kina price of agricultural, logs and marine product exports increased by 31.1% and was attributed to higher kina prices of cocoa, coffee, copra oil, palm oil rubber and marine products.

Meanwhile, the report said the level of gross foreign exchange reserves had increased from K7,982.9 million at the end of March to K8,441.4 million as of last month.

The increase was also attributed to the high mineral tax receipts made in foreign exchange.

The economy's continued growth during the first quarter was supported by business sales, private sector employment, private sector credit and higher prices and production of most agricultural and mineral export commodities.