Home News Featured News MAS asserts that it "does not engage in currency manipulation" after U.S....

MAS asserts that it “does not engage in currency manipulation” after U.S. Treasury puts Singapore on watch list

The central bank added that it "does not and cannot use the exchange rate to gain an export advantage or achieve a current account surplus"

Author

Date

Category

- Advertisement -

The Monetary Authority of Singapore (MAS) has asserted that it “does not engage in currency manipulation” after the U.S. Treasury put Singapore on a watch list for currency manipulation.

In its semi-annual foreign exchange report that was submitted to Congress, the U.S. Treasury cited Singapore’s large current account surplus and net foreign exchanges purchases of at least S$17 billion last year, as the reasons for placing Singapore on the list.

The watch list will closely examine the foreign exchange policies of the nations on the list. Countries on the list that end up being labelled “currency manipulators” could impact financial markets and face penalties.

MAS has since responded to the Treasury report and has asserted that it “does not manipulate its currency for export advantage.”

- Advertisement -

Reiterating that Singapore’s monetary policy framework, which is centred on the exchange rate, has always aimed at ensuring medium-term price stability, the central bank said that it aims to keep consumer price inflation low and stable as their primary mandate.

MAS added that it “does not and cannot use the exchange rate to gain an export advantage or achieve a current account surplus. A deliberate weakening of the Singapore dollar would cause inflation to spike and compromise MAS’ price stability objective.”

Pointing out that “Singapore’s current account balance should be viewed in context,” MAS said: “In its early years of development, Singapore ran persistently large current account deficits averaging close to 10% of GDP between 1965-84, when its investment needs were greater than available saving.

“As the economy matured, its investment needs tapered off, while national saving rose. Consequently, the current account turned into a surplus position.

“MAS assesses that together with rising affluence that will raise consumption, Singapore’s current account surplus will be reduced when public and private savings are drawn down for the needs of an ageing population.”

-/TISG

Send in your scoop to news@theindependent.sg 

- Advertisement -

JTC issues stop-work order on contractor that ‘erroneously’ cleared Kranji woodlands

Singapore – The contractor that “erroneously” cleared a forested area at Kranji has announced it has been issued a stop-work order by JTC and is assisting the developer with investigations on the issue. On Feb 16, state-owned industrial property developer JTC responded...

Clementi, Dover, Kranji: Singapore’s grand conservation plan is to plant trees and destroy forests

Yes, we love to plant trees. Since Lee Kuan Yew started the whole ritual, at least 10,000 saplings are planted every year since 1963 as part of the Tree Planting campaign. Impressive indeed. Singapore Clean and Green. At the same time,...

Ex-UOB vice-president charged with mishandling over S$5.4 million

Singapore—Sixty-five-year-old Ling Shek Lun, who used to be a  vice-president at UOB, has been charged with mishandling millions of dollars, reported straitstimes.com (ST) on Friday (Feb 19). Ling, a Singaporean who was charged in district court on Feb 10, faces two charges...

Send in your scoop to news@theindependent.sg 

Theindependent