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The unusual basket case of Singapore's monetary policy


The Monetary Authority of Singapore's policy statement is coming up, and there's a nice explanation by a couple of colleagues about how Singapore's monetary policy works.

One of the reasons we constantly find ourselves having to explain how the policy works is that not many countries in the world manage their monetary policy the way that Singapore does it. The chart above shows the different ways that exchange rates are managed, or not (some countries have free floating rates), in 191 countries around the world, compiled by the International Monetary Fund. Who are the other countries using a composite peg for their exchange rate? Algeria, Botswana, Fiji, Iran, Kuwait, Libya, Morocco, Samoa, Syria, Tonga and Vietnam. No wonder we don't hear about this that often.

There's an interesting article on the MAS website from 10 years ago giving a pretty good background on the topic.