Read more at https://www.channelnewsasia.com/news/business/singapore-currency-manipulation-us-watchlist-mas-11575740
(Updated: )
Lam Chian Leong
(1) Singapore import many goods and food for our needs - as we do not have land to produce foods nor do we have resources and raw materials.
(2) Thus Singapore do not depreciate our currency to gain export advantage - because we need to buy imported foods and goods for our needs and with depreciated value in our currency will cause imported inflation and the price of imported goods will be too expensive for our domestic consumption.
(3) In fact, Singapore currency is strong compare to many Countries in ASEAN, China etc --- except US who have a stronger currency against Singapore dollar.
(4) US currency is strong because its interest rate is high that cause capital inflow and it has an expansionary policy of boosting its Economy by reducing tax.
(5) We don't depreciate our Sing dollar in order to export more to US.
(6) And the trade figure show that Singapore is having a trade deficit of US$6 billion with US.
(7) It does not make sense to keep Singapore in the watchlist for currency manipulation - as managing our exchange rate is part of Monetary Policy to ensure a stable currency for Singapore - like what FED do to US by manipulating its interest rate.
(2) Thus Singapore do not depreciate our currency to gain export advantage - because we need to buy imported foods and goods for our needs and with depreciated value in our currency will cause imported inflation and the price of imported goods will be too expensive for our domestic consumption.
(3) In fact, Singapore currency is strong compare to many Countries in ASEAN, China etc --- except US who have a stronger currency against Singapore dollar.
(4) US currency is strong because its interest rate is high that cause capital inflow and it has an expansionary policy of boosting its Economy by reducing tax.
(5) We don't depreciate our Sing dollar in order to export more to US.
(6) And the trade figure show that Singapore is having a trade deficit of US$6 billion with US.
(7) It does not make sense to keep Singapore in the watchlist for currency manipulation - as managing our exchange rate is part of Monetary Policy to ensure a stable currency for Singapore - like what FED do to US by manipulating its interest rate.
Like · Reply · 1m · Edited
Lam Chian Leong
(1) Singapore healthy current account surplus - is not only contributed by our export only.
(2) Singapore also has large investment in many Countries - and the income earn from the investment as well as transfer payment from remittance also contribute to our current account surplus.
(3) Thus it is not correct for US to label Singapore as currency manipulation to gain export advantage that boost our current account surplus - which is a flaw argument.
(2) Singapore also has large investment in many Countries - and the income earn from the investment as well as transfer payment from remittance also contribute to our current account surplus.
(3) Thus it is not correct for US to label Singapore as currency manipulation to gain export advantage that boost our current account surplus - which is a flaw argument.
Lee Mae
This should have been done long ago and why now?
Like · Reply · 1h
Lam Chian Leong
(1) Malaysia will get stronger response from US for running US$27 billion trade surplus against US.
(2) So you mind your own business - and stop interfering with our business.
(3) Trump is getting down in all those Countries that have trade surplus with US - starting with Canada, Mexico, China, Japan, EU, Vietnam, India --- and will soon come down to Malaysia.
(2) So you mind your own business - and stop interfering with our business.
(3) Trump is getting down in all those Countries that have trade surplus with US - starting with Canada, Mexico, China, Japan, EU, Vietnam, India --- and will soon come down to Malaysia.
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Benjamin Lim
Does this mean MAS is spreading fake news? Monetary Authority of Singapore (MAS) said it "does not manipulate its currency for export advantage" but, MAS manages the Singapore dollar nominal effective exchange rate (S$NEER) within a policy band, just as other central banks conduct monetary policy by targeting interest rates. Isn't managing the Singapore dollar and not let it free float in market, manipulation?
Lam Chian Leong
(1) Which central banks in the World will allow free float - if speculators attack its currency and bring down the economy - Like what happen to Asian currency crisis where speculators attack the Thai baht, Indonesia rupiah and Malaysia ringgit.?
(2) Even US FED will intervene to protect its currency if come under attack.
(3) Else why Central Bank exist in the 1st place?
(4) Central Bank exist to manage and administer money supply and its Monetary Policy - to ensure stability in its currency as well as Economic Policies.
(5) But it is very obvious that Singapore don't manipulate our currency to boost export - because our currency are stronger than most currencies like ringgit, yuan, rupiah etc with the exception of US dollars which are stronger.
(6) US dollar is strong not because we manipulate to depreciate our currency - it is because US maintain high interest and cut tax - that boost the value of US dollar and cause big capital inflow that make US dollar strong.
Please understand the economic fundamental before accusing Singapore of making fake news.
(7) US by putting us onto the currency manipulation watchlist to boost export - is flaw and errorneous.
(2) Even US FED will intervene to protect its currency if come under attack.
(3) Else why Central Bank exist in the 1st place?
(4) Central Bank exist to manage and administer money supply and its Monetary Policy - to ensure stability in its currency as well as Economic Policies.
(5) But it is very obvious that Singapore don't manipulate our currency to boost export - because our currency are stronger than most currencies like ringgit, yuan, rupiah etc with the exception of US dollars which are stronger.
(6) US dollar is strong not because we manipulate to depreciate our currency - it is because US maintain high interest and cut tax - that boost the value of US dollar and cause big capital inflow that make US dollar strong.
Please understand the economic fundamental before accusing Singapore of making fake news.
(7) US by putting us onto the currency manipulation watchlist to boost export - is flaw and errorneous.
Like · Reply · 1m · Edited
Lam Chian Leong
Functions of a central bank include:
(1) implementing monetary policies.
(2) setting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms
(3) controlling the nation's entire money supply
the Government's banker and the bankers' bank ("lender of last resort")
(3) managing the country's foreign exchange and gold reserves and the Government bonds
(4) regulating and supervising the banking industry
(1) implementing monetary policies.
(2) setting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms
(3) controlling the nation's entire money supply
the Government's banker and the bankers' bank ("lender of last resort")
(3) managing the country's foreign exchange and gold reserves and the Government bonds
(4) regulating and supervising the banking industry
Like · Reply · 1m
Lam Chian Leong
Benjamin Lim -
(1) Depends on who use it.
(2) Singapore per capita GDP exceed that of US - so we have apply our Economic policies correctly and we don't have huge public debt of US$23 trillion.
(1) Depends on who use it.
(2) Singapore per capita GDP exceed that of US - so we have apply our Economic policies correctly and we don't have huge public debt of US$23 trillion.
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