The Monetary Authority of Singapore (MAS) will adopt a 0% per annum rate of appreciation of the policy band starting at the prevailing level of the S$NEER, as policymakers sought to mitigate the economic impact of COVID-19, the central bank said in a monetary policy statement on Monday. Policymakers added that there will be no change to the width of the policy band, and it will continue to be vigilant over developments in the economy and financial markets, and stands ready to curb excessive volatility in the S$NEER. The MAS manages monetary policy through exchange rate settings, rather than interest rates. For this year, the central bank expects the economy to shrink between -4 to -1%, while core Inflation and CPI inflation are expected to average between -1 and 0%.
Historically, the Singapore Dollar reached an all time high of 2.31 in September of 1985. Singapore Dollar - data, forecasts, historical chart - was last updated on March of 2020.
The Singapore Dollar is expected to trade at 1.43 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.44 in 12 months time.