The Monetary Authority of Singapore (MAS) is the country's central bank. It has two scheduled policy meetings a year, in April and October.

Today's statement is expected to have no change to policy.

In April the MAS left settings unchanged.


Note that the MAS's key tool is its exchange rate policy. It adjusts the exchange rate of its dollar (SGD) instead of changing domestic interest rates like most other economies.

It manages the SGD exchange rate against a basket of currencies of Singapore's major trading partners.

  • sets the path of the policy band of the Singapore dollar nominal effective exchange rate (S$NEER)
  • this serves to strengthen or weaken the local currency against those of its main trading partners

S$NEER is a combined index made up of bilateral exchange rates between Singapore and its major trading partners

  • is a trade-weighted exchange rate

MAS permits the S$NEER to move up and down within the policy band (exact levels are not disclosed). If it goes out of this band, the MAS steps in by buying or selling Singapore dollars.

The policy band has three parameters that the MAS can adjust:

  • the slope, the level and the width
  • adjusting the slope will influence the pace at which the Singapore dollar strengthens or weakens
  • adjusting the level, or mid-point, of the policy band allows for an immediate strengthening or weakening of the S$NEER,
  • widening the policy band allows for more volatility of the S$NEER
  • these parameters are what are reviewed twice a year, typically in April and October. However, additional reviews can be held if conditions demand an immediate change in settings, such as in 2022 when high inflation triggered two off-cycle moves.

The SGD has been weakening against the USD. Obviously not the only currency that has been doing so!

usd sgd 13 October 2023