Foreign exchange operations

Singapore’s monetary policy is aimed at ensuring low and stable inflation. MAS conducts monetary policy by managing the Singapore Dollar Nominal Effective Exchange Rate (S$NEER)The S$NEER is the trade-weighted basket of currencies managed by MAS., just as other central banks manage interest rates to achieve their inflation targets.

To implement its monetary policy stance, MAS intervenes in the foreign exchange market, especially when there are significant short-term capital flows that cause the S$NEER to deviate from a level consistent with domestic price stability.

For more information on Singapore’s exchange rate-centred monetary policy framework and its implementation, please refer to these FAQs. Section 4 of these FAQs explains how MAS carries out its monetary policy, and the key principles and drivers of its intervention operations.

MAS’ disclosure on its foreign exchange (FX) intervention operations seeks to enhance the transparency of the actions taken to implement its monetary policy stance, while preserving MAS’ operational effectiveness. The data comprises MAS’ net purchases of foreign exchange from its intervention operations on a six-month aggregated basis, and with a three-month lag from the end of the period.

FX intervention operations would lead to an accumulation or drawdown in Official Foreign Reserves (OFR). Changes in the OFR are also driven by other factors, including realised investment gains and losses and the transfer of assets to the Government for longer-term investment. The OFR is published monthly under the Reserve Statistics section.

Period Net purchase of FX from intervention operations
1 July 2019 to 31 December 2019
US$29.9 billion
1 January 2020 to 30 June 2020  US$44.4 billion 
1 July 2020 to 31 December 2020  US$52.1 billion 
1 January 2021 to 30 June 2021  US$22.4 billion 
1 July 2021 to 31 December 2021 US$6.6 billion 
1 January 2022 to 30 June 2022 US$57.8 billion
1 July 2022 to 31 December 2022  US$15.1 billion 
1 January 2023 to 30 June 2023  US$12.0 billion 
1 July 2023 to 31 December 2023 US$23.8 billion