focused on the area of financial service and financial inclusion as a vehicle to empower our people in the informal economy to participate in the development process as this area concerns the bank. but as we all know there are other areas of services - education, transport infrastructure, health, etc - that needs to be improved as well for our rural population. this is the responsibility of other agents in the country. indeed, the vision 2050 calls for a better service delivery model in the country. improvement in these areas together with improvement in financial inclusion and literacy will go a long way in empowering the people in the informal economy and the whole economy to realize their potentials in contributing to the development of the country as aspired in the national constitution, and now the vision 2050. while the informal economy is being recognized through the act of 2004 and now the launching of the policy, there are others who can pick on some negatives, as in many initiatives. in particular, some may view the urban squatter settlements as the source for those who participate in informal activities. port moresby for instance has seen an increase in the number of settlements and expansion of existing ones. many of the informal sector street vendors, for instance, come from settlements. the informal activities occur outside shops and at bus stops and provide an avenue for opportunists to steal / pick pocket from people of both formal and informal economies / sectors. mothers and school children have fallen victims. these negative aspects must be minimized as stated in the mission statement. on the whole, there should be more positives that would outweigh the negatives if done and enforced properly. other agents such as the law enforcement bodies must play 3 / 4 bis - central bankers'speeches their part in controlling the daily negative aspects of informal activities on the streets and weed out those who resort to petty crimes to earn a living, while also not unreasonably chasing mothers and stealing their items ( like betelnuts ) for sale. the launching of the informal economy policy will provide the necessary step for the development of the informal economy towards the realization of that dream - of greater participation of the mass of our population in economic activities that will improve their income and life style, and contribute to the growth and development of the economy. thank you. 4 / 4 bis - central bankers'speeches

high agricultural and mineral export receipts, combined with inflows related to the construction phase of the png lng project. the kina appreciated against the australian dollar by 8. 3 percent to a $ 0. 4276 over the same period. the appreciation was attributed to cross currency movements, as the australian dollar weakened against the us dollar. as a result, the trade weighted index ( twi ) appreciated by 12. 6 percent during the same period. the real effective exchange rate ( reer ) also appreciated by 7. 6 percent during the december quarter of 2011 ( see chart 3 ). the increase in international reserves led to the growth in money supply and liquidity. annual growth in broad money supply ( m3 * ) and monetary base in 2011 were 17. 3 percent and 61. 7 percent, respectively. the increase in broad money supply resulted mainly from increases in nfa of the depository corporations, while the substantial growth in monetary base mainly reflected increase in commercial bank deposits at the central bank. lending to the private sector continued to grow moderately as a result of firms utilising own funds while those associated with the png lng project received funding from the project. the bank issued net new central bank bills ( cbbs ) totaling k1, 102. 0 million, to diffuse some of the bis central bankers ’ speeches excess liquidity. however, domestic interest rates continued to fall, given the persistent high level of liquidity, with cbb rates at around 2. 0 percent and treasury bill rates at around 3. 0 percent. total liquidity of the banking system further increased by 37. 2 percent to k8, 888. 4 million in 2011, due to high government expenditure and foreign exchange inflows. net claims on the government declined by k846. 7 million in 2011, mainly due to increased deposits in the trust accounts. in the first quarter of 2012, the bank issued additional net cbbs of k92. 4 million. excess liquidity continued to remain high, therefore the bank increased the crr by an additional 1. 0 percent. in 2012, broad money supply is expected to increase by 14. 8 percent, driven mainly by increase in nfa of the banking system. monetary base and private sector credit are projected to grow by 33. 2 percent and 7. 0 percent, respectively. the bank considers the projected growth in monetary aggregates appropriate to support economic growth, but is also mindful of their inflationary impact, for