, Singapore

Jittery local depositors flee to foreign currencies as SGD steadily deteriorates

Foreign currency deposits have ballooned by $2b.

More depositors are ditching the Singapore dollar as its weakness against the greenback intensifies. Data from JP Morgan show that local currency deposit growth has slowed to a crawl since the beginning of 2014, reflecting expectations of an even weaker currency.

By contrast, foreign currency deposits have increased by over $2b in the past six months, the largest semiannual rise in the past decade.

“Local currency deposit growth has slowed to a crawl since the beginning of the year, likely as a result of a shift out of SGD deposits, and into foreign currencies and higher-yielding assets. With only a modest slowing in credit growth, the fall in local currency deposit growth is pushing the loan-to-deposit ratio to decade highs, suggesting increasingly tight domestic bank liquidity,” stated JP Morgan.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!