Benchmark
Pull Out Your Protractors: Time for Singapore's Monetary Decision
Singapore's central bank uses a complex mix of policy tools to steer the economy
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As the only advanced economy to use its exchange rate as its main monetary policy tool, Singapore's central bank policy statements tend to be less straightforward than most.
The Monetary Authority of Singapore, which will announce its latest decision on Wednesday, manages the Singapore dollar's exchange rate against an undisclosed basket of currencies from its major trading partners and competitors. It intervenes in the market to keep the rate within an unspecified band and changes the slope, width and center of that band when it wants to adjust the pace of appreciation or depreciation of the local dollar.