The gains were boosted by $22.3b of investment gains.
This chart from the Monetary Authority of Singapore (MAS) shows that Singapore’s official foreign reserves (OFR) gained $8.5b for FY2017/2018.
According to its annual report, the gains in the OFR comprise $22.3b of investment gains and a negative $13.8b from currency translation effects.
Investment gains mainly came from interest income and realised capital gains. MAS noted that investment gains over the last 10 years averaged $12.1b per annum.
Meanwhile, the negative currency translation effects were caused by the strengthening of the Singapore dollar against the US dollar and the Japanese yen.
As at 31 March 2018, OFR was at $376.5b. “OFR invested in a well-diversified portfolio for good long-term returns and resilience across market conditions.”
MAS said that the portfolio of investment covered cash, bonds, and equities in both advanced and emerging market economies.
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