MAS to stop Singapore dollar from rising in surprise easing of monetary policy

The article points to the recent efforts by MAS (Monetary Authority of Singapore) to prevent the value of Singapore Dollar (SGD) to appreciate in relation to the US Dollar (USD). Though MAS denied depreciating the Singapore dollar overtly, the move did lead to depreciation of SGD against USD.


Topics include Depreciation, Managed Float Exchange Rate system, Balance of Payments and consequences of Depreciation on the International Trade and Economic Growth of the country. In this case, also discuss the Economic conditions contributing to the Depreciation/Curtailed Appreciation using Exchange Rate diagrams.


Evaluation will cover impact on Economic Growth, Interest Rates, Inflation, Terms of Trade, Balance of Payments, domestic Producers, Consumers and Government in short term and long term.