Singapore’s monetary policy is a unique one and also well respected in the international space. Many countries, such as the US, adopts an interest rate policy where they increase or decrease interest rates to steer the economy into a certain direction. However, Singapore is different. We adopt an exchange rate policy where the Monetary Authority of Singapore (MAS) steer the Singdollar into a certain direction.

 

Just last week. MAS announced that they will will allow the Singapore dollar to rise in the first tightening of its exchange rate-based monetary policy in six years. This is in view of the stronger economy where MTI announced a 4.3% GDP growth for the first quarter of 2018. A stronger Singdollar will make exports more expensive and strengthens the purchasing power for us in Singapore. This is more to control any inflationary pressures due to the stronger economy.

The strengthening of the SGD …