MAS Press Statement

Singapore, 21 July 2005...The People's Bank of China has announced reforms to the Renminbi exchange rate regime. China will move to a managed floating exchange rate system with reference to a basket of currencies.The announced changes to the Renminbi will not have a major impact on the Singapore dollar or on our exchange rate regime. We manage our exchange rate against a weighted basket of currencies of our major trading partners. This will allow us to accommodate the changes within the existing framework of the exchange rate system.

2. Our current exchange rate policy stance remains appropriate. The fundamentals of the economy have not changed, nor have the factors influencing the growth prospects for the Singapore economy. MAS will continue to maintain the current policy of a modest and gradual appreciation of the S$NEER policy
band as announced in our Monetary Policy Statement of 12 April 2005.

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