Billions of reserves being used to prop up weak SGD | Singapore Business Review
1 view

Billions of reserves being used to prop up weak SGD

Reserves have fallen by US$34bn since July.

Singapore is spending billions of reserves to prop up its currency, a report by DBS revealed.

According to DBS, Singapore's reserves have fallen by US$34 billion since July, a trade-off of keeping the SGD on its appreciation path.

"In six short months, reserves have fallen by the equvialent of 11% of a full year's GDP. Little wonder the central bank eased back on the appreciation path in late-January, Further easing will be necessary if reserves don't stop falling," the report stated.

Singapore is not alone in using reserves to keep the currency strong. China's reserves have fallen by US$150b, causing the yuan to barely fall against the dollar. Meanwhile, Thailand, Malaysia, the Philippines and Taiwan have all spent the equivalent of 1%-4% of a full year's GDP just over the past six months supporting exchange rates.

Get Singapore Business Review in your inbox
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!

Singtel, Keppel Corp, and OCBC Bank led the Straits Times Index on 29 July.
Total property income decreased by 4% but was offset by the decline in expenses. 
This is under the Special Situation Fund for Startups investment scheme. 
Called Project Nexus, the blueprint outlines how countries can integrate their retail payment systems onto a single cross-border network.
It plans to expand in the coming months, on the back of China’s economic recovery.
Funds will be used to modernise its portfolio.
Local financial firms are expected to remain resilient even should the economy slip into a recession again.
The Mapletree group of companies led the index on 28 July.
A total of 120 flats sold for more than $1m as of the first seven months of the year.
There was a total of 200 auction listings in the second quarter, 40 of which were residential properties.
Singapore’s top 20 most traded manufacturing-related stocks have a combined market value of $98.8b.