This was highlighted by an Australian think-tank director when addressing the 38th Australia-PNG Business Forum and Trade Expo in Port Moresby.
Steve Howes of the Australia National University's Devpolicy Centre said the forex shortage had caused PNG to lose its competitive edge during the minerals boom between 2000 and 2014.
"The kina has depreciated from 2013 to 2020 according to statistics from the Bank of Papua New Guinea (BPNG), however the real exchange rate has remained high," Howes said.
Howes highlighted other BPNG statistics about the currency, pointing out that depreciation of the kina was caused by an increase in imports and inflation which had caused the highest depreciation over the past decade, recorded at 14% at the end of 2015.
