Pressure on domestic liquidity expected, says BSP
30 October, 2018, 1:35 am
PORT MORESBY, 229 OCTOBER 2018 (POST COURIER)—-The positive propping of foreign exchange reserves and the movement of large sums of deposits by commercial banks into the Papua New Guiinea Central Bank as a result of the Public Money Management Regularisation (PMMR) Act will cause some pressure on domestic liquidity.
That’s from the Bank of South Pacific who stated that on the back of positive propping of foreign exchange reserves via the interventions made by the Central Bank from the successful sovereign bond, pressure on domestic liquidity is expected.
Domestic liquidity refers to the amount of cash and cash-equivalent securities circulating within a nation’s economy. This may include time and demand deposits along with currency circulating outside banks.