Decline of kina
22 October, 2016, 12:00 am
PORT MORESBY – The decline of the kina against the US dollar allows for the improved value of exports which results in an increase in foreign currency, Lae Chamber of Commerce and Inc president Alan McLay says.
Mr McLay said this would address the shortage of foreign exchange in the country.
But he noted that the price of imported goods would increase because of the kina’s lack of buying power.
He said the decline means that value of exports improved.
“A decline in the kina against the US dollar means that the value of exports improves, which is good for the country as it improves the inflow of foreign currency and ultimately the pressure on Forex eases,” Mr McLay said.
However, it also means that the buying power of the kina is lower, and so the price of imported goods becomes higher.
He said the kina had not declined as much against the Australian dollar which saw goods imported from Australia selling at reasonable prices in Lae.
“A saving grace is that the kina has not lost as much against the Australian dollar and hence, goods sourced from Australia are still selling in our stores at reasonable prices,” Mr McLay said.