Yuan policy won't hit Singapore

QX179R SG

Singdollar exchange rate policy will not be affected by China's currency reforms: MAS

SINGAPORE: Singapore's central bank said the Singdollar exchange rate regime will not be affected by China's plan to reform its renminbi policy.

On the weekend, China's central bank said it will proceed further with reform of the renminbi exchange rate regime and enhance its exchange rate flexibility.

Replying to queries, the Monetary Authority of Singapore (MAS) said it manages the Singapore dollar against a weighted basket of currencies of the country's major trading partners.

This allows Singapore to accommodate the changes within the existing framework of its exchange rate system.

MAS said its policy of a modest and gradual appreciation of the Singdollar announced in April this year remains unchanged and is appropriate against underlying economic conditions.

MAS said it will continue to be vigilant over developments in the external environment and their impact on the domestic economy and stands ready to curb excessive volatility in the Singdollar.

- CNA/vm

ed88 SG

Ya of course . Singapore exchange rate is weighted against a basket of countries because China is not the only main trading partner. Since SG is a import based economy , there will definitely a slight repercussion on the Economy like a slightly increased inflation rate cause alot of the goods that permeated our consumer market and capital markert is china made. I also think that the strenghting of the yuan is timely as it has been causing huge gaping deficits for other countries. China has to come to terms that she cannnot just rely on her vast and cheap resources anymore to gain an economic edge over her adverseries like USA and India.