SGD Exchange Rate

Ah, Singapore: The ‘Lion City’ has one of the world’s highest concentrations of millionaires per capita and a ban on chewing gum. Coincidence?

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What influences the GBP/SGD exchange rate?

The Singapore dollar (SGD) is handled by the Monetary Authority of Singapore (MAS). It is managed against the currencies of Singapore’s top trading partners and competitors. Foreign currencies are given weights according to Singapore’s dependence on them for trade.1

 

Through a managed float system, Singapore’s trade-weighted exchange rate shifts within a specific policy band that’s revisited periodically. When the exchange rate starts to shift outside of this band, MAS will buy or sell foreign exchange to get the rate inside the band again.1

 

Because the SGD is managed against several currencies, including the GBP, the SGD/GBP exchange rate could be influenced by the aftermath of Brexit.

GBP/SGD Snapshot

“Singapore accounts for half of UK exports to ASEAN, worth £5.6 billion in 2014, although some will be re-exported elsewhere. It is one of our largest trading partners in Asia.” – UK Department for International Trade2

 

  • In 2015, the UK ranked 5th in GDP, while Singapore ranked 37th.3

  • Singapore is a primary insurance marketplace, as well as one of the top locations for asset management, in Asia. Plus, it is the most business friendly regulatory environment in the world, according to the World Bank.4  

  • In 2014, Singapore was the 15th biggest importer in the world and the 20th biggest exporter.5 That same year, the UK was the 9th biggest exporter and the 5th biggest importer.6   

  • Top exports from the UK to Singapore include machinery and transport equipment, business services, financial and insurance services, chemicals, food and beverages, manufactured goods, and travel services.2

  • Because the majority of Singapore’s goods are imported, MAS determined that the exchange rate would be the best way to guide the SGD higher or lower, as well as manage inflation. Singapore is the only major economy that uses the exchange rate in its monetary policy.7   

 

Whether you’re planning on investing in a business in Singapore or sending money back home to friends and family, OFX can help you save on your international money transfers. If you need to make a payment to Singapore, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalised service.

 

Currency Name: Singapore Dollar

Currency Code: SGD

Currency Symbol: S$  

Central Bank: Monetary Authority of Singapore

Countries Used In: Singapore, Brunei

Major Unit: One Dollar    

Minor Unit: One Cent   

Note Denominations: $2, $5, $10, $20, $25, $50, $100, $1,000, $10,000

Coin Denominations: 1, 5, 10, 20, 50 cents; $1, $5

 

Sources:

  1. http://www.mas.gov.sg/~/media/MAS/Monetary%20Policy%20and%20Economics/Monetary%20Policy/MP%20Framework/exchangePolicy.pdf
  2. https://www.gov.uk/government/publications/exporting-to-singapore/exporting-to-singapore  
  3. http://databank.worldbank.org/data/download/GDP.pdf
  4. https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/Singapore/Doing-business
  5. http://atlas.media.mit.edu/en/profile/country/sgp/#Imports
  6. http://atlas.media.mit.edu/en/profile/country/gbr/
  7. http://www.straitstimes.com/business/economy/10-things-you-should-know-about-singapores-monetary-policy

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