Singapore's Monetary Policy Framework
Monetary policy in Singapore is centred on the exchange rate. Learn more about our unique monetary policy framework.
MAS conducts monetary policy based on sound economic analysis and careful surveillance. Find out about our monetary policy framework and central bank operations, and access our statements, reports and models.
MAS implements monetary policy by undertaking foreign exchange operations to keep the Singapore dollar nominal effective exchange rate within a policy band consistent with ensuring price stability.
MAS also conducts money market operations to provide sufficient liquidity for a well-functioning banking system and to meet banks' demand for reserve and settlement balances. Details of MAS’ liquidity management framework are set out in this .
To reduce interest rate volatility and to facilitate the smooth functioning of the S$ payment systems, MAS operates two liquidity facilities – the MAS Intra-day Liquidity Facility and the MAS Standing Facility (SF). MAS also provides RMB liquidity via the RMB Facility and Overnight RMB Liquidity Facility to support the broader RMB market in Singapore.
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