Singapore refutes US accusation of currency manipulation

MAS says its policy framework has always been aimed at ensuring medium-term price stability

Published Wed, May 29, 2019 · 09:50 PM

Singapore

SINGAPORE "does not and cannot use the exchange rate to gain an export advantage or achieve a current account surplus", the Monetary Authority of Singapore (MAS) said in response to the US Treasury's move to put Singapore on an updated watch list over its "uncommon" exchange rate and its material current account surplus.

Singapore made the semi-annual watch list for the first time after the US Treasury expanded the number of trading partners covered in the report from its top 12 trading partners to 21 trading partners.

Total goods trade between the US and these 21 trading partners amounted to nearly US$3.5 trillion in 2018.

Having expanded its scope of review, the US Treasury then used updated thresholds as its means to monitor the risk of unfair currency practices. Currency manipulation feeds into trade conflicts as it can impact the price competitiveness of exports, with the topic coming sharply int…