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?
What influences the USD/SGD exchange rate?
The SGD, which is handled by the Monetary Authority of Singapore (MAS), is managed against the currencies of the country’s top competitors and trading partners. The foreign currencies are given weights according to Singapore’s dependence on them for trade.1
By using a managed float system, Singapore’s trade-weighted exchange rate moves within a particular policy band, which is revisited regularly. Whenever the exchange rate begins to shift beyond this band, MAS will sell or buy foreign exchange in an effort to get the rate within the band again.1
Because the SGD is managed against several currencies, including the USD, interest rates in Singapore could be influenced by the interest rates of countries around the globe, including the United States. For example, if USD interest rates were to increase, interest rates of the SGD would also increase.2
“The United States and Singapore have a comprehensive relationship with productive cooperation on economic, political, and security issues.” – US Department of State3
In 2015, the United States ranked 1st in GDP, while Singapore ranked 37th.4
In 2013, Singapore was the US’ 13th biggest export market and 26th biggest import market. Top exports to Singapore included machinery, mineral fuel, and aircraft. Top imports from Singapore included organic chemicals, machinery, and medical and optic instruments.5
Singapore is the top insurance marketplace in Asia, it’s one of the top locations for asset management in Asia, and it’s the most business friendly regulatory environment on the globe, according to the World Bank.6
In 2014, Singapore was the 15th biggest importer in the world, as well as the 20th biggest exporter.7 On the other hand, the US was the 2nd biggest exporter and the 1st biggest importer on the planet.8
Because the majority of Singapore’s goods are imported, MAS determined that the exchange rate would be the best way to guide the SGD lower or higher, as well as manage inflation. Singapore is the only major economy that uses the exchange rate in its monetary policy.9
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 personalized 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
OFX fees not included in the conversion amounts shown above.
*Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.
CCY Worldwide Delivery Times
Some destinations for this currency include:
*Delivery times are indicative and measured in business days from the time your funds are received by OFX.