SINGAPORE: In a social media post on Tuesday (April 30), Ms Ho Ching, former Temasek Holdings CEO and wife of Prime Minister Lee Hsien Loong, shared a recent article on how the Singapore dollar is faring.
Mdm Ho posted a link to an April 28 piece on the personal finance website Dollars & Sense titled, “How Has The Singapore Dollar Performed Against Major Currencies In 2024?”
“Another way to look at the SGD is against a basket of currencies in proportion to our trade with the different economies around the world. This kind of mimics our purchasing power for the purpose of sustaining our economic activities.
We are one of the few economies where our trading volumes are 3 to 4 times the size of our GDP,” noted Mdm Ho in the caption to her post.
The Singapore dollar is one of the strongest currencies in Southeast Asia and Asia as a whole.
Despite Singapore’s small size, the Singdollar is the 13th most traded currency on the foreign exchange market and accounts for around 1.8 per cent of daily forex trades.
“The Singapore dollar, which was introduced in 1967, is an Asia-Pacific currency. Singapore’s economy is based on exports of electronics and chemicals and developed services such as finance and tourism.
The Monetary Authority of Singapore operates the exchange rate of the SGD using a managed float regime. The rate can fluctuate within a specified band, and the MAS intervenes in the forex market to prevent high volatility.
Singapore is the leading financial center in the Asia-Pacific region — it ranked third in the Global Financial Centre Index in 2022,” noted FXOpen late last year.
The Dollars & Sense piece explains how well the Singdollar is doing versus the United States dollar, the euro, the Japanese yen, the British pound, and the Malaysian ringgit.
Compared to the US dollar, the Singdollar has depreciated by 2.9 percent, in large part due to adjustments made to its interest rate expectations by the US Federal Reserve.
Dollars & Sense added that with tensions in the Middle East, investors have shifted to the US as a safe haven.
Notably, the Singdollar has appreciated by 6.3 per cent against the Japanese yen, and the Malaysian ringgit by 1.0 per cent. It has remained stable against the Euro and the British pound.
“This reflects Singapore’s strong economic fundamentals, including continued foreign capital inflows and moderate inflation, positioning it well to manage global economic uncertainties.
The SGD continues to attract global and regional investors, maintaining its appeal as a reliable and stable currency in Southeast Asia,” Dollars & Sense added. /TISG
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