The Monetary Authority of Singapore tightened its monetary policy on the 13th April (Friday), allowing for a slight appreciation of the Singapore dollar (grab your wallets people, we’re going on a shopping spree in JB). This move was made with the expectation of steady economic growth in 2018, with a projected rate of 4.3% in the first quarter of 2018, higher than 3.6% in the fourth quarter of 2017. In case you forgot everything from economics class (like me), Singapore’s monetary policies involve the management of its exchange rate against currencies of its major trading partners and competitors. The appreciation of the Singapore Dollar was intended to stabilize inflation rates that are bound to rise from the increased rate of economic growth, as well as to safeguard against uncertain macroeconomic outcomes from current trade tensions between the U.S. and China.
Written by Ashley Koh