The PNG Chamber of Commerce & Industry (PNG CCI) have released a letter to the Treasurer, Ian Ling-Stuckey regarding their consideration of the devaluation of the Kina pertaining to the recent International Monetary Fund [IMF] funding to the Country, calling for the Treasury to not go ahead with the Devaluation of the Kina. The letter, written by the President of the PNG CCI, Mr Ian Tarutia, the chamber has acknowledged the analysis and the recommendations by policy advisors that the Kina is overvalued and devaluation within the range of 15-29% is needed. However, PNG CCI have advised that the advantages do not outweigh the negatives, therefore are not in favour of the devaluation. Outlined reasons are as follows; Export Boost, Import Reduction, Inflation & Investor Confidence. “While devaluation increases farm gate commodity prices to PNG Growers of coffee, Palm Oil, Vanilla, Cocoa etc., they maintain that the growers are price takers and not makers and should global demand fall, this will severely impact the pricing and economics of export.” As imports become more expensive, this will influence consumers to purchase locally produced goods, however due to the decline in local industries involved in manufacturing who reported a decline by as much as 20% production capacity while cost of production has increased and no one is buying in volumes. The chamber has asserted that demand will not increase due to high unemployment. This will be one of the main challenges that face the country at the moment. PNGCCI also added that with already increasing prices of imported goods and any increase that is not regulated by the ICCC being passed on to consumers, shelf prices for goods they estimate has gone up by 20%. Additionally, for many business houses, accessing limited forex is already challenging enough just to pay for goods and services.