Same year I did my first OE and went looking for a job. Got off the PX A310 that was doing direct flights to Auckland. Less than a grand return from memory. Bougainville underpinned the PGK. Whilst Sandline may not have been politically or socially correct that was the value to the PNG economy at the time. I remember advertisements in the NZ herald for Iroquois pilots to fly 'combat missions' in support of this. A long time ago now.
Devaluation of the FJD$ cost me a good six figures and then some. But as reserve bank policy and in terms of foreign reserves I believe devaluation of the PGK is only a matter of time. It is still over valued and controlling/limiting foreign remittances is the same path RBF went down prior to devaluation of the FJD$. An Australian (?) Economist predicted that the PGK will fall to about $0.20 AUD$ about six months ago...realistically that is what it is (currently) worth. Good for oil, gas and mineral exports as more PGK will flow in, bad for importers and inflation will go through the roof for a couple of years until the PGK 'fixes itself'. The only dig I will have is that a 10 year oil and gas boom has been squandered...sure global oil and gas have **** themselves but the PGK should have appreciated in value but that's the pacific islands and melanesia
Originally Posted by
Metro man
When I worked there in 1994 PGK1 = AU$1.41