MAS Pursues SGD Appreciation Amid Strong Singapore Growth
What happened
The Monetary Authority of Singapore is pursuing a gradual, data-dependent appreciation path for the Singapore dollar. This policy decision follows reports that Singapore's economy grew 6.1 per cent in the first half of the year, prompting the government to raise its full-year growth forecast to 4.5 to 5.5 per cent. Inflation remains contained at 2.3 per cent.
From businesstimes.com.sg
Why it matters
The appreciation path is intended to help contain the cost of imported goods. Solid economic growth and stable prices are expected to provide a supportive environment for corporate earnings, with industrial companies serving as the main engine of the Singapore market.
The Monetary Authority of Singapore operates within Singapore's financial system.
From businesstimes.com.sg
Who's involved
- Monetary Authority of SingaporeThe central bank executing monetary policy for Singapore.
- SingaporeThe sovereign state where the monetary policy is implemented.
- ST EngineeringA global technology and engineering group contributing to Singapore's market earnings.
- Yangzijiang ShipbuildingAn owner of several Chinese shipyards contributing to Singapore's market earnings.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SingaporeSpeculative
The cost of imported goods might be contained due to the Monetary Authority of Singapore's policy.
- Yangzijiang ShipbuildingSpeculative
Yangzijiang Shipbuilding could see boosted visibility due to record order books and contribution to market earnings.
- ST EngineeringSpeculative
ST Engineering could see boosted earnings visibility due to record order books and its status as an industrial driver.
Keep exploring
The entities involved
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Singapore
sovereign island country and city-state in maritime Southeast Asia
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Monetary Authority of Singapore
registration authority
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