In other words, the resource curse scenario can be addressed through better and improved infrastructure network. What Can the bank of PNG Do to Minimize or Mitigate the “Dutch Disease” Effect to Assist the Agriculture/Forestry/Fisheries Sector? On its part, the Bank of PNG can mitigate or minimize the “Dutch Disease” effect through its management of the Kina exchange rate.
While the exchange rate regime is a floating one, it can use the build-up in international reserves to support the Kina at an exchange rate that is favourable for agricultural export growth while not completely going against the market trend, under a real exchange rate appreciation scenario.