MAS: Singapore Dollar Remains Within Policy Band in Face of Market Volatility
Singapore, 12 August 2015… The Monetary Authority of Singapore (MAS) said today that the trade-weighted Singapore dollar remains within its policy band notwithstanding increased volatility in foreign exchange markets following the recent shift in China’s exchange rate policy. MAS made the statement in response to media queries.
2 Under Singapore’s exchange rate-centred monetary policy framework, MAS manages the Singapore dollar against a trade-weighted basket of currencies within a policy band, and does not focus on any specific bilateral exchange rate. This framework allows the Singapore dollar to adjust to short-term market fluctuations, while providing an anchor against undue volatility in the foreign exchange market.
3 The monetary policy stance that was announced in April 2015 remains appropriate from the perspective of overall macroeconomic conditions. MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar.