The Currency Of Singapore: Monetary Policy, Exchange Rate Value Considerations And Investing
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The Currency of Singapore is officially known as the Singapore dollar. The Singapore Monetary Authority (Singapore Central Bank) manages the Singapore exchange rate by allowing it to fluctuate against a group of the nations major trading partners. The exact composition of this basket of currencies hasn’t been revealed. The Monetary Authority meets every six months to review its official policy and release its corresponding statements.
According to the website of the Singapore Monetary Authority its three primary objectives are: to promote sustained non inflationary economic growth, to promote a sound and progressive financial center and to build a cohesive and integrated organization of excellence. Despite the turbulence of worldwide financial markets, Singapore’s capital markets have remained orderly and robust since the US sub prime fallout. The Singapore exchange rate has risen marginally in recent months in response to the continued weakening of the US dollar.
Singapore is a major hub for international finance and operates as a gateway for international trade. Much of its economic activity depends on its reliance on imported materials for value adding and the re-export of finished products due to the fact that it lacks land and natural resources. Singapore also operates as one of the world’s busiest ports surpassed only by Shanghai for handling shipping tonnage. The port facilitates over half the world’s supply of crude oil. Singapore money exchange occurs naturally as part of the day to day affairs of this international commerce.
The outlook for the currency of Singapore remains bright. The continued economic woes faced by the US and the rise in regional Asian currencies will keep the Singapore money exchange strong relative to other currencies. Although some slowing in economic growth is expected in line with the perceived global slowdown, the MAS Policy Statement issued on 10th October 2007 indicates that the Singapore authorities are expecting that regional trade to remain strong keeping conditions relatively buoyant. The policy statement statement issued the following paragraph to support this: “In the Singapore economy, growth will be led by non-IT manufacturing, construction and business services, which have built up strong momentum and are more dependent on regional and domestic as well as developments in specific product markets”. Inflation is expected to pick up marginally due to a global rise on the price of food and crude oil.
Thirteen free trade agreements with countries including the US help Singapore facilitate trade and commerce. It enjoys good relations with the US and is very active in gaining exposure to the growth of China and India. Investing in the Singapore exchange rate can be a challenge due to its dependence on the six unknown currencies that shape its value.
How to Invest in the Currency Of Singapore
US residents can select from several products offered by (Everbank) to gain Singapore dollar exposure including:Worldcurrency CD’s (earn interest denominated in Singapore currency)
The Pacific Advantage and Pas-Asian CD have the Singapore Dollar as part of its constituency.
A Worldcurrency Access Deposit Account offers a transactional money market account in Singapore Dollars.
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