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.

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!