Monetary Authority of Singapore Annual Report 2012/2013

The Authority’s total assets, including the Currency Fund, increased by $21.21 billion to $340.40 billion in the financial year ended 31 March 2013. The Currency Fund’s net external assets grew by 4.5% to $38.81 billion, whilst the currency-in-circulation rose at a faster 9.5%. As a result, the net external asset backing of the currency-in-circulation fell to 121%, from 127% a year ago.

Total liabilities also increased by $31.82 billion to $315.87 billion, with the higher currency-in-circulation, as the amounts due to the Singapore Government, MAS Bills, deposits of financial institutions and the currency-in-circulation grew.

Most of the Authority’s assets comprise official foreign reserves, intended for the conduct of the monetary policy and the defence of the Singapore dollar. These are invested in a diversified range of foreign currency assets. During the year, the Singapore dollar appreciated against most currencies, including the Yen, the Sterling Pound, the Euro and the US dollar by 13.8%, 6.2%, 5.1% and 1.3% respectively. Following this, the Authority recorded a net loss of $10.61 billion for the year, as the foreign exchange impact from the stronger Singapore dollar exceeded the interest, dividend income and other gains from the foreign assets held. Total expenditure decreased from $0.89 billion to $0.82 billion, mainly due to lower investment and interest costs.

For this financial year, there is no contribution to Consolidated Fund, nor return of profits to the Government.