POMCCI warns on forex shortage

THE shortage of foreign exchange is severely affecting not only businesses in the country but has also reduced the number of jobs available, says the Port Moresby Chamber of Commerce and Industry (POMCCI).
POMCCI warns on forex shortage POMCCI warns on forex shortage POMCCI warns on forex shortage POMCCI warns on forex shortage POMCCI warns on forex shortage

Rio Fiocco

Staff Reporter

POMCCI president Rio Fiocco said the negative impact on employment and the government's ability to service foreign loans could not be underestimated.
 
"It's extremely serious," he said in response to questions from The National newspaper about the forex situation. 
 
"Companies are already deferring investment decisions due to lack of confidence, primarily off the back of ‘Take Back PNG' slogans and failure to sign the Total (for the development of Papua LNG project) and Wafi-Golpu deals," he said.
 
"Businesses are right-sizing as we speak and mass retrenchments and redundancies are taking place as companies look for long override efficiencies. In hindsight, some held off while they waited for positive outcomes around these and other mining projects.
 
"I believe a falling exchange rate between the Australian dollar and kina will carry major negative repercussions for the economy.
 
"PNG is not yet ready for import replacement and a falling exchange rate will add a burden to PNG families and also the government's ability to service its foreign debt," Fiocco said.

 

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