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Wednesday, December 11th, 2019

Singapore dollar nominal effective exchange rate remains well within policy band: MAS

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by November 11, 2016 General

SINGAPORE, Nov. 11 (Xinhua) — The Monetary Authority of Singapore (MAS), the country’s central bank, on Friday stated that Singapore dollar nominal effective exchange rate remains well within its policy band, notwithstanding increased volatility in international foreign exchange markets since Donald Trump won the U.S. presidential election.

MAS said the country’s domestic money markets continue to function normally and there is ample liquidity in the system. Singapore’s exchange rate centered monetary policy framework provides sufficient flexibility to accommodate fluctuations in bilateral exchange rates of Singapore dollar against other currencies.

“MAS does not target any bilateral exchange rate. The monetary policy stance remains as announced in October 2016,” said the authority.

MAS also mentioned that it would continue to closely monitor developments in the external environment and their impact on financial markets and the domestic economy. The central bank stands ready to curb excessive volatility in the trade-weighted Singapore dollar if needed.

The statement of MAS on Friday came as Singapore dollar slid to 1.4158 per U.S. dollar, the weakest since Feb. 4 in the wake of volatility across Asia’s markets after the U.S. presidential election.

MAS said in October that it would maintain the rate of appreciation of Singapore dollar’s nominal effective exchange rate policy band at zero percent.

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