![](https://i.imgur.com/CLvY2jA.png")
14-03-2022, 01:44 AM
CPFB (force us to save) by collecting our contributions every month.
Every month hundreds of millions of dollars sucks and taken out of the system.
After sucking our money they recycle it by buying bills and bonds from the Singapore govt.
CPFB does no investing just pass on money collected to the govt.
MAS recycles the money back into the system by lending into the system (money market operations) or
buy foreign currencies and selling Singapore dollars (foreign exchange operations).
If not the system will become so short (tight) that interest rates will shoot through the roof.
The foreign currencies bought becomes foreign reserves, which gets recycled to GIC.
Every month hundreds of millions of dollars sucks and taken out of the system.
After sucking our money they recycle it by buying bills and bonds from the Singapore govt.
CPFB does no investing just pass on money collected to the govt.
MAS recycles the money back into the system by lending into the system (money market operations) or
buy foreign currencies and selling Singapore dollars (foreign exchange operations).
If not the system will become so short (tight) that interest rates will shoot through the roof.
The foreign currencies bought becomes foreign reserves, which gets recycled to GIC.
