A look at how S$NEER is used in Singapore's monetary policy

The Monetary Authority of Singapore (MAS) is holding its regular, bi-annual review on Oct 14.
A poll of economists by Bloomberg suggests MAS may move to strengthen the Singapore dollar to curb inflationary pressures. The central bank relies on currency exchange rates and a trading band for the dollar to stabilise prices, rather than tweaking interest rates. The Singapore Dollar Nominal Effective Exchange Rate (S$NEER) is the main policy tool of MAS.

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[tommytankkify]

Thanks to late Dr Goh Keng Swee and his team for their visions since 1960s!!! 👍👍👍

[sgang]

S$NEER
Singapore Dollar Nominal Effective Exchange Rate

[perlazywicz]

The Singaporean Dollar is # 10 of Most traded Currencies in the World. Congratulations !!!
🦁🇸🇬👏🏻👏🏻👏🏻👍🏻

[anziar]

That's a very capable s'pore govt. 👍👍

[martinlee]

Professor Jamus Lim pointed out on the need to strengthen the Singapore dollar while in response, Mr Alvin Tan in his response, somewhat undermines Asst Prof Lim's concerns and that MAS had already been doing enough.

However, just today, MAS announced that it would "re-centre the mid-point of the Singdollar nominal effective exchange rate (S$NEER) policy band up to its prevailing level."

So obviously from what has just happened, Asst Prof Lim surely knows what he is talking about.

[andrewsjacobs]

All these money cant stop the floods, cant make rice to grow on the fields cant make the disastor go away cant take the greed away and cant fill the stomach and cant stop the sorrow in many families and cant settle the practical problem of the immenent food shortage

[clementihammock]

Tomorrow Morning, MAS team will look at Late Dr. Goh Keng Swee Portrait first, then LKY. If both nod and smiles, ok SGD$ up. 🤣😂

[shananarocks]

How about S$NEEZE? A knee jerk reaction to short term happenings that back fire in the longer term. 😅

[cholesterol]

Even if you have strong money if there wont be enough supply you cant eat money or concrete. Inflation hits around the world plus many affected by climate change. Any country would ban exports of things that they will have a shortage for themselves. Even if you can buy cheken for 100sgd if supply runs out youll end up eating cheken flavoring instead of the real things. Not to mention its nearing december another factor for price increase.

[RB-rpud]

I wonder when MAS adjusts the SGD band, rather than interest rates, will that mean MAS has to use the reserves to defend the Sing dollar?

[Utube]

That is why when trading currency 20 days simple moving average is a gem.

[MrBernardonghc]

Please train Mr Roland Lim. He is pausing here and there in his news, making him very uneasy 🙄

[kengleetan]

Strengthen ah? Malaysian happiness!...3.5 to 1 soon? Sinkie can stuck it!😆😆😆

[deschan]

When MAS is run by new citizen who ditched his country and do not serve National Service. Does Singaporeans interest bother him? I doubt.

[Soshiaircon]

I failed economics catch no ball, anyone like me too?

[leexianlong]

Government intervention and currency manipulation is not the solution to our inflation problem. The world has a supply side problem and not a money supply problem. Distorting the foreign exchange market by the MAS is at best a temporary stop gap with its own corresponding negative effects. This will end up strengthening the SGD and weaken our key exports. Many of our export businesses will suffer and jobs lost in a already stressed market climate. A large segment of Singaporeans are paying the price for PAP's personal political gains. Business associations must not allow such government intervention to hurt their bottom line. Employees of these export reliant companies have their livelihood at stake. There must be an immediate attempt by business associations to rally everyone to lobby against the PAP. Help fund nation-wide mass protest and put out anti PAP advertisements to air on national TV. Singaporeans must know of the corrupt acts of the PAP.

[deschan]

Its irresponsible to tell people what they want to do without letting them know what it cost them.

[martinlee]

Workers’ Party MP Jamus Lim tackled higher interest rates recently, noting that this has been a global occurrence, and isn’t just happening in Singapore. It has meant that people have had to face higher mortgage bills, loan repayments, and other payables, on top of the higher prices of goods.

“And of course, almost all of us are huge savers, because of forced saving via CPF, ” noted Assoc Prof Lim, who teaches Economics at ESSEC Business School.

This is because the OA interest rate is based on the average of major local banks’ plain-vanilla deposit rates over the recent past (or a minimum of 2.5 percent, whichever is higher). 

But our local banks have kept these deposit rates very low, in spite of inflation. This is also in spite of other interest rates having already climbed up significantly, accurately capturing the effects of inflation.”

[deschan]

Billions dumb to sustain Sing is never good. Thats one way to bankrupt Singapore quickly