On Thursday, 12th June 2025, the Port Moresby Chamber of Commerce and Industry (POMCCI) hosted a Business Breakfast with Bank South Pacific (BSP), bringing members valuable insights into the state of Papua New Guinea’s economy.

The session featured a detailed presentation by Leighton Crisp, Head of Markets Sales Pacific at BSP, who highlighted critical trends in commodities and foreign exchange shaping PNG’s economic outlook.

Key Highlights from the Presentation

• Commodity prices remain high: Gold, cocoa, and coffee prices have surged, providing strong inflows for PNG’s economy. Gold has hit record highs driven by global geopolitical tensions, while coffee and cocoa exports continue to benefit from supply shocks in major producing countries.
• Risks on the horizon: PNG exporters face challenges such as extreme weather events, global trade policy shifts, and compliance with the upcoming EU Deforestation Regulation (EUDR). Fortunately, PNG has been classified as a “low risk” country under the EUDR, allowing exporters to benefit from simplified compliance processes.
• Foreign exchange market trends: Stronger exporter inflows and softer importer demand have significantly reduced outstanding FX market orders. BSP noted that Bank of Papua New Guinea’s (BPNG) intervention has eased, reflecting healthier FX inflows from mining and agriculture.
• Exchange rate developments: The kina traded at 0.2438 USD at the end of May, down 2.5% year-to-date. BSP projects a gradual depreciation toward a “market-clearing rate” as part of ongoing adjustments to the banded peg system.

Following the presentation, BSP senior executives — Mark Robinson, Daniel Faunt, and Raymond Logona — joined the on-couch discussion and Q&A session, offering members the opportunity to engage directly on pressing issues affecting PNG’s economy.

POMCCI extends its sincere thanks to the BSP Treasury Team for their time and expertise, and to all members who joined us for this highly engaging and informative session.