[theold]

https://www.straitstimes.com/business/ba...-inflation

[theold]

Quite a number of countries were caught off guard.

[Scythian]

"The Monetary Authority of Singapore (MAS) transferred excess official foreign reserves of S$75 billion (US$ 55.11 billion) to the government through a subscription of reserves management government securities (RMGS).7 Apr 2022

[Blasterlord2]

How does a stronger sing dollar affect reserves?

[Migrant]

All I know is my $1 is now 3.20 ringgit.

[sporeguy]

How does a stronger sing dollar affect reserves?

Reserves are denominated in USD and other currencies. So if Singdollar strengthens against USD RMB Euro then the reserves would have "shrunk" if converted to Singdollar. Accounting purposes. 

All companies do such accounting - that's why Japan unscrupulously keeps its yen weak so that Japanese companies' accounts look great (if majority of the company's earnings are denominated in USD)

[Blasterlord2]

Reserves are denominated in USD and other currencies. So if Singdollar strengthens against USD RMB Euro then the reserves would have "shrunk" if converted to Singdollar. Accounting purposes. 

All companies do such accounting - that's why Japan unscrupulously keeps its yen weak so that Japanese companies' accounts look great (if majority of the company's earnings are denominated in USD)

Thanks for your explanation but I look back at the chart of USD vs SGD and don't find that the exchange rate fluctuates so much since 2011. So this reason of strong USD doesn't seem valid.

[sporeguy]

Thanks for your explanation but I look back at the chart of USD vs SGD and don't find that the exchange rate fluctuates so much since 2011. So this reason of strong USD doesn't seem valid.

Excerpt from the article:

The Singdollar strengthened 4 per cent against the British pound, 5 per cent against the euro, and 9 per cent against the Japanese yen, MAS noted.

The strengthening of the Singapore dollar led to a negative foreign exchange translation effect of $8.7 billion.

Singapore's foreign reserves are not solely denominated in USD. It's a basket of currencies - in this case USD, Euro, British Pound, Yen and RMB.

Most of Singapore's reserves are held in USD British Pound Euro and Yen

[psooi]

SGD was strengthen against major currency from 2011 to 2019(except in 2020), why MAS not reported a loss during that period??

[sporeguy]

Give you a simple example:

You pay S$100k to buy RM306k and put in savings account.

If Singdollar strengthens to RM3.16 your savings in RM would now only be worthed S$96.835k translates to a "loss" of about S$3.2k

[sporeguy]

SGD was strengthen against major currency from 2011 to 2019(except in 2020), why MAS not reported a loss during that period??

Although the singdollar strengthens against other currencies BUT its other investments made more than the loss due to foreign exchange.

Excerpt from the article:

MAS also said that as at end-March, Singapore's official foreign reserves recorded a net loss of $4.7 billion as investment gains of $4 billion were more than offset by the strengthening of the Singapore dollar, which led to a negative foreign exchange translation effect of $8.7 billion.

[sporeguy]

So psooi during those years you quoted Singapore economy was very strong - its investment gains must be very high to offset the foreign exchange loss.

[watchfirst9]

stronger S$?
compare to currencies because many countries are badly affected by Fed rate rise
but against not commodities, S$ is not doing well.

[Scythian]

MAS is speaking a foreign language

[Blasterlord2]

So psooi during those years you quoted Singapore economy was very strong - its investment gains must be very high to offset the foreign exchange loss.

So in the end, the real reason is that our economy is not doing well.

[hansamu]

Which economy is doing well?

[singlon]

although Singdollar strengthened 4 per cent against the British pound, 5 per cent against the euro, and 9 per cent against the Japanese yen it has weaken against the US corporation DOLA
it shall get worse
Japoni Blackhole has made matter impossible not to paint it as stagflationary

Hymen is still intact A Virgin
The feel good phase of Inflation could not be enjoyed.
Penetration failed.
we will observe the white sheet place below the virgina. at a later date.

[singlon]

https://youtu.be/reg6Mxwc30Y

[singlon]

[Rubitin]

https://www.prevention.com/life/a2286399...GK-Y9t1dvM

[Scythian]

MAS is speaking a foreign language

In past 3 years, MAS transferred total S$120 Bil (including latest S$75 Bil in April 2022) to GIC 

So, how come negative S$7.4 bil in fiscal year 2021/2022?

What's going on?

[RiseofAsia]

No more free $$$, of course, the report will be ugly… Next year the result will be even uglier, need to buy back more depreciated SGD…

[RichDad]

In past 3 years, MAS transferred total S$120 Bil (including latest S$75 Bil in April 2022) to GIC 

So, how come negative S$7.4 bil in fiscal year 2021/2022?

What's going on?

$120bn is not profit.

[RiseofAsia]

All I know is my $1 is now 3.20 ringgit.

1 MDB saga has a very serious impact on Ringgit, this is why it falls till current level. Not becos we are doing much better than them.
The confident level still never recover.

[RiseofAsia]

For Jap weakening its currency to fight bond default. 真的是活该！
Only fools still buy Jap Bond.
人家都还没动手，你自己选自残？

[maddog]

Mas policies of recruiting scholars is their downfall

[RiseofAsia]

Mas policies of recruiting scholars is their downfall

人算不如天算。
能洞察天机者才是神人也！