PNG should adopt the Aust dollar, says expert

Papua New Guinea should adopt the Australian dollar to ensure economic stability, an expert on developing Asia Pacific economies advised today.

"Moving to the Australian dollar ... removes speculation against the currency, reduces risks for investors, would remove a large part of the interest rate risks and overall would greatly improve the investment climate," said Professor Ron Duncan. "However PNG will still have a freedom of fiscal policy."

After a decade of inflation and the dismissal of f