MAS' Response to Queries on PBC's Announcement

Singapore, 21 June 2010...The Monetary Authority of Singapore (MAS) has received press queries relating to the announcement on 19 June 2010 by the People's Bank of China (PBC) that they will proceed further with reform of the Renminbi (RMB) exchange rate regime and enhance RMB exchange rate flexibility. The PBC’s announcement will not have an impact on Singapore’s exchange rate regime. MAS manages the Singapore dollar against a weighted basket of currencies of our major trading partners. This allows us to accommodate the changes within the existing framework of our exchange rate system.

2   The policy of a modest and gradual appreciation of the S$NEER policy band announced by MAS on 14 April 2010 remains unchanged and is appropriate against underlying economic conditions. MAS will continue to be vigilant over developments in the external environment and their impact on the domestic economy, and stands ready to curb excessive volatility in the S$NEER.

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