Though it is expected to record the world’s highest GDP growth this year thanks to a large LNG project, Papua New Guinea’s external liquidity position keeps deteriorating. Since 2012, foreign exchange reserves have been halved as a result of high capital goods imports and of lower commodity prices (LNG and copper above all). This notably impacts the country because it is largely reliant on commodities for its exports. The decline has been exacerbated by the government’s frequent interventions to defend the kina which has nevertheless lost a third of its value since 2013. Meanwhile, short-term external debt has been multiplied by three between 2013 and 2014, thereby further worsening the country’s liquidity ratios and justifying a downgrade of the short-term political risk rating.