7 Jan 1998... Singapore operates a flexible exchange rate policy. MAS manages the Singapore dollar against a weighted basket of currencies of Singapore's main trading partners, and not against any single currency. The primary goal is to maintain price stability to foster long-term sustainable economic growth.
This policy remains unchanged. While the Singapore dollar has weakened against the US dollar, Deutschemark and Sterling, it has appreciated substantially against the Ringgit, Rupiah and Baht. Overall, on a trade weighted basis, its value has remained stable, notwithstanding the currency turmoil. This is in keeping with the strong long-term fundamentals of the Singapore economy - high savings rates and low inflation, fiscal and current account surpluses, large foreign reserves and low foreign debt.
The MAS intervenes in the foreign exchange market from time to time to ensure orderly movements of the S$ exchange rate consistent with our exchange rate policy and the underlying economic fundamentals. We do not publicise our exchange rate operations. The MAS stands ready to act decisively against any speculative attack on the Singapore dollar.
KOH YONG GUAN MANAGING DIRECTOR MONETARY AUTHORITY OF SINGAPORE