IRAN CONFLICT RAISES GLOBAL ECONOMIC UNCERTAINTY; BPNG GOVERNOR
BY RAYLEEN WANJIMAN
THE Governor of the Bank of Papua New Guinea Elizabeth Geniasays rising tensions involving Iran-Israeli/USA war is creating uncertainty in the global economy.
Speaking during the Bank’s breakfast in Port Moresby yesterday at Hilton Hotel, the Governor said the full economic consequences will depend on how the conflict unfolds and how long it continues.
She said global markets are already closely watching developments as instability in the Middle East could affect energy supplies and international trade.
she said the conflict has already caused instability in global energy markets, with oil prices rising sharply due to fears of disruptions to supply routes in the region.
About 20 percent of the world’s oil supply passes through the Strait of Hormuz, a key shipping route near Iran, meaning any disruption there can have a major impact on global fuel prices and inflation.
Despite the uncertainty, the Governor said Papua New Guinea’s economy remains resilient, with inflation contained and foreign reserves at adequate levels.
She added that the central bank will continue monitoring global developments and respond where necessary to protect economic stability.
