Singapore Exchange Rate System

4439 Words18 Pages
INTRODUCTION Of all currencies in Asia, the Singapore Dollar is by far the most popular. This currency has an ISO code of SGD, which when compared to the US Dollar has remained a relatively stable currency. Management of the Singapore Dollars is by the Monetary Authority of Singapore or MAS, which reviews and manages this currency to an undisclosed basket of trade-weighted currencies. Some of the features of this particular currency is that the Singapore Dollar is freely convertible. With the Singapore Dollar being a part of the float system, it actually benefited the country during the financial crisis. Because of that, the Singapore Dollar was soon chosen as the currency for other Asian countries. Another reason the Singapore Dollar has remained popular is that the revenue that comes from this exchange rate is based primarily on international trade. This means the country has been able to keep foreign exchange rates lenient, meaning there is no restrictions specific to both import and export, regardless of the currency. Since the exchange rate of the Singapore Dollar was relatively high in 2000, it did see some change in 2003 when numbers ranged between 1.5 and 1.8 per every $1 US Dollar. From 2003 to 2008, the exchange rate for the Singapore Dollar has remained solid, fluctuating from a low of 1.48 in 2008 to a high of 1.75 in 2003. Considering that the world has been experiencing an economic crisis, it would be expected to see even a strong currency such as the Singapore Dollar have some downward turn but even this has only been slight. HISTORY OF THE SINGAPORE DOLLAR The first Singapore dollar was issued on the 12th of June 1967. Initially, the Singapore Dollar was introduced once Brunei and Malaysia’s monetary union was broken in 1965 although it can still be exchanged with the Brunei Dollar today. When the Singapore

More about Singapore Exchange Rate System

Open Document