How does MAS conduct its monetary exchange rate policy?
MAS implements monetary policy by undertaking foreign exchange operations to keep the Singapore dollar nominal effective exchange rate within a policy band consistent with ensuring price stability.
Does MAS set interest rate?
MAS does not attempt to control the level of domestic interest rates, limiting itself to dampening excessive interest rate volatility. Singapore dollar interest rates are therefore largely determined by foreign interest rates and investor expectations of the future movement of the Singapore dollar.
How much is CBN exchange rate today?
CBN Exchange Rates
| Currency | Sell / Buy Rate | Change |
|---|---|---|
| USD | ₦ 410.37 / 409.37 | 0.00% |
| EUR | ₦ 486.29 / 485.1 | 0.28% |
| GBP | ₦ 566.06 / 564.69 | 0.22% |
| ZAR | ₦ 28.42 / 28.35 | 0.88% |
When did the MAS change its monetary policy?
During the Global Financial Crisis, MAS eased monetary policy twice: reducing the rate of appreciation of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band to 0% in October 2008, and re-centring the policy band downwards in April 2009.
Why is MAS unable to target both exchange rate and interest rate?
MAS is unable to target both the exchange rate and the interest rate because it has an open capital account, which means that international financial capital is free to move into and out of Singapore.
What does nominal effective exchange rate ( NEER ) mean?
The nominal effective exchange rate (NEER) is an unadjusted weighted average rate at which one country’s currency exchanges for a basket of multiple foreign currencies. In economics, the NEER is an indicator of a country’s international competitiveness in terms of the foreign exchange (forex) market.
Why is MAS chosen intermediate target for monetary policy?
This section explains why the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) is MAS’ chosen intermediate target for monetary policy and identifies the channels through which the exchange rate impacts prices in the economy. It also clarifies that MAS’ exchange rate policy is Singapore’s only form of monetary policy.
