Monetary Authority of Singapore Tightens Stance

October 14, 2021

Today, the Monetary Authority of Singapore, which targets the exchange rate rather than an interest rate and which reviews its stance only semi-annually, surprised analysts by raising the slope of the S-dollar’s allowed trading band. The band had been lowered in April 2020 as Covid hit to a slope of zero percent. Officials did not change the width or mid-point of the new band but is encouraging some currency appreciation by restablishing a band with some slope. Band slope had also been flat from April 2016 through April 2018, when like now it was raised.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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