Kina depreciation to continue until 2026, FX backlog to persist.

PAPUA New Guinea's Kina depreciation will

continue until 2026 with the foreign exchange

(FX) backlog to persist as the country wait for

major projects to start, an ANZ research

report detailed.

ANZ Pacific economist Kishti Sen in his report

detailed that due to the absence of

meaningful new foreign-currency flows

associated with mega projects in PNG, the

PGK depreciation was expected to persist

until 2026.

"The market backlog remains stubbornly

above PGK1bn, with limited foreign direct

investment (FDI) next year meaning

outstanding 'ell kina' orders will linger at

current levels over 2025"he said.

He saida permanent solution to a balanced

FX market needed to coincide with increased

foreign direct capital flows into the economy,

which was not expected until 2026.

"Therefore, modest PGK depreciation is

expected over the next 18 months, although

things can turn around sooner" he said.

Source: Post-Courier