The Bank of Papua New Guinea Governor, Loi Bakani, has assured Papua New Guineans that they should not be worried about the value of the falling kina.
Papua New Guinea's Post Courier reports the government's top banker said the economy was sound and he was confident in the management of the economy so there was no need for alarm.
The paper reports the depreciation of the local currency was due to increasing demand for foreign currency to make payments for the import of goods and services as well as import demand for the Christmas festive season.
Loi Bakani says the continued high demand indicates the underlying buoyancy of the private sector and supports the Treasury and Bank of PNG's recent GDP growth forecast for 2013.
The central bank has intervened with US$984 million in the ten months to October to assist the foreign exchange market, reducing foreign reserves from $US4 to 3 billion over that period.
Mr Bakani says this level is more than sufficient to cover future import payments.
