•  Exchange Rate: The positive developments in the foreign exchange market since the second half of 2003 with stable inflows from both the mineral and agricultural sectors has resulted in the appreciation of the kina.
The exchange rate appreciated from $ at the end of December 2004 to $ and from $ to $  •  Balance of Payments (BOP): The improved inflows of export receipts reflect higher prices and volumes by the non-mineral sector, which is an encouraging sign that growers and exporters are responding positively to the improvements in commodity prices.