ZCZC
BCN-19
SINGAPORE-CURRENCY
Monetary Authority of Singapore denies currency manipulation
SINGAPORE, May 30, 2019 (BSS/Xinhua) – The Monetary Authority of Singapore
(MAS) on Wednesday issued a release in response to media queries on the U.S.
Treasury Report on Macroeconomic and Foreign Exchange Policies (UST Report),
saying that it does not manipulate its currency for export advantage.
The MAS reiterated that Singapore’s monetary policy framework, which is
centered on the exchange rate, has always been aimed at ensuring medium-term
price stability, and will continue to do so.
“As pointed out in the UST Report, MAS manages the Singapore dollar
nominal effective exchange rate (S$NEER) within a policy band, just as other
central banks conduct monetary policy by targeting interest rates,” the
authority said in the release. “Whether they target the exchange rate or the
interest rate, central banks aim to keep consumer price inflation low and
stable as their primary mandate.”
The MAS said that it does not and cannot use the exchange rate to gain an
export advantage or achieve a current account surplus, and a deliberate
weakening of the Singapore dollar would cause inflation to spike and
compromise MAS’ price stability objective.
The 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,
according to the release.
BSS/XINHUA/HR/1120