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Singapore dollar to stay strong

Singapore dollar to stay strong


As Singapore’s economic recovery gains pace, analysts expect the central bank to tighten policy by strengthening the Sing dollar in 2018.

This comes as the domestic economy staged a remarkable recovery in 2017. Rather than setting interest rates, the Monetary Authority of Singapore (MAS) conducts policy through the exchange rate by allowing the Sing dollar to float against the currencies of its main trading partners within an unspecified policy band and changes the slope, width and centre of that band when it wants to adjust the pace of appreciation or depreciation of the Sing dollar.

In April 2016, the central bank unexpectedly eased policy by setting the rate of appreciation of the Sing dollar’s policy band at zero percent. It has maintained a “neutral” stance since.