The Trump administration removed India and Switzerland from its currency monitoring list of major trading partners on Tuesday. The monitoring list, among others, include China, Japan, South Korea, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam.
The Monetary Authority of Singapore (MAS) responded today that it does not manipulate its currency for export advantage, and added that Singapore’s monetary policy framework, which is centred on the exchange rate, has always been aimed at ensuring medium-term price stability, and will continue to do so.
The US Treasury Report also points out that 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. 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.
As stated in the statement, “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.”