This is the view of Bank South Pacific CEO Robin Fleming, who said forex revenues rose by 10.5%, pushed along by year-end dividend payments and donor funds for various projects.

 

The rise was reflected in an increase of K965 million from K9.21 billion in the September quarter to K10.175 billion in the December quarter of last year.

 

"The forex market turnover rose by 7.4% from a year earlier," Fleming told The National newspaper.

 

"The forex market turnover has risen by 9.8% over the past six months, supported by strong commodity prices, in particular oil, copper, palm oil, coffee. Firmer commodity prices, combined with increased project specific, donor foreign currency inflows and end of year dividend payments offset the lost forex market inflows from the closure of the Porgera gold mine. Barrick Niugini's foreign exchange inflows were down 75%," Fleming said.

 

"The kina has been stable and unchanged against the US dollar for the past 14 months, however the pullback in the Australian and US dollars during the pandemic, related weakness in the Australian economy, strength in the US economy helped strengthen the kina against the Australian dollar.

 

"The kina is likely to remain stable against the US dollar, while a steady Australian dollar will show improved stability in the kina to Australian dollar cross rate."

 

Fleming added that the strong forex inflows in December 2021 were expected to taper in the March quarter this year.

 

"December forex inflows have substantially reduced outstanding forex orders from high levels seen in November, and this is expected to reverse in January, February with post-Christmas restocking."