Central bank actions worry Polye

KANDEP MP and leader of THE party Don Polye has raised serious concerns over the Bank of Papua New Guinea on the pegging of kina. Mr Polye said the commercial banks have been directed to limit foreign currency dealings at the banks and centralising and rationing foreign currency dealings at the banks. He said the 2014 budget is the best strategy to avert any negative impact on the PNG currency exchange rate stability to ensure a sustainable economy. The 2014 budget stipulates as an Act of Parliament which sets vital principles of PNG socio-economic management on the following: •Medium Term Development Strategy;
•Medium Term Fiscal Strategy;
•Medium Term Debt Management Strategy;
•Medium Term Growth Strategy or the Stimulus Package; and
•Vision 2050 Objectives.
 Mr Polye said the budget aims to diversify the economy of PNG so to translate gains for the extractive industries to the non-extractive industries sector. The budget further articulates for a healthy GDP growth within a manageable debt strategy, he said. The budget also creates a platform for institutions and systems of service delivery to be strengthened and supported. However, Mr Polye said current political trends have developed to the contrary by averting the strategies carefully structured within the confines of those prudently designed policies of socio-economic development. “Political interferation has proliferated in the operations and functions of institutions and deviated prudent course to ad-hoc and unshuttered approach to operations of systems of governance,” Mr Polye said. He said those in control have deviated from strengthening and allowing state agencies to perform their independent duties to that is being compromised. “However to be honest or the truth is that the systems of delivery or policy implementation has been proven a failure or the functions and values of institutions have been forced to disintegration,” he said. Another issue of serious concern is the pegging of the kina. The executive government should not interfere into the trading of the kina, he said.