• PNG Business News

Devalue Kina By 25%, Get Economy On Track: Ex-MP



Businessmen Ken Fairweather has suggested that the government immediately devalue the kina by 25 per cent to get the economy back on track. The former Sumkar MP also called on the government to stop the blame game and get on with the job.


Mr Fairweather, responding to recent outbursts in media on economy, said the K4.6 billion budget miss is only US$1.3 billion, which he claimed is peanuts. He said the government needed an urgent royal commission to investigate the entire financial system.


Mr Fairweather said his call for an investigation comes after so much talk about the K4.6 billion budget deficit. He said the kina rate is so high against trading partners like China, Indonesia, the Philippines currencies to name a few. “I wish to point out that K4.6 billion budget miss is only US $ 1.3 billion which is peanuts really,” he said.


“I say simply devalue the kina by 25 per cent all it will be fixed. Why is kina so high against trading partners China, Indonesia, the Philippines etc currencies? “Much of the blame can be laid at the feet of Bank of PNG. “We need a royal commission to investigate our entire financial system. “And I tell you, there is no need to keep pointing fingers.


“The world is going through massive financial upheaval and PNG despite the rhetoric is at the bottom bit of the food chain. “We have had this devaluation in the past.


Chan/Haiveta government devalued by 17 per cent it was brilliant move because one, the hard currency policy needs to be challenged and two, the banks and finance companies are ripping us off on fees, three, interest rates paid by treasury bills is reverse of world central bank trend.


“We are 8 per cent the world is 2 per cent, that’s it. “No institutions are lending to agriculture sector including NDB and or Agriculture Bank or whatever its name is. It should be closed and yes, before I forget, the IBD rate at banks is 2 per cent but borrowings is at 14 per cent, what a ridiculous mass.”

Continue reading at https://postcourier.com.pg/devalue-kina-by-25-get-economy-on-track-ex-mp/ | Post Courier

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