Monday, August 25, 2008

Singapore to Keep Currency Policy Unchanged

According to Trade and Industry Minister Lim Hng Kiang, the Singapore government will continue to keep its current policy of keeping Singapore dollar strong despite of the now apparent weaker GDP growth and poorer manufacturing data. This policy is set to stay at least until the Singapore government next meeting on October for a round of monetary policy review.

Singapore has since from October 2007, being using SNEER (Singapore dollar nominal effective exchange rate) instead of interest rate to appreciate Singapore dollar gradually.

Today, the Singapore government announced GDP (Gross Domestic Product) up 2.1% in 2Q2008 while CPI (Consumer Price Index) up 6.5% in Jul 2008. The CPI for Jul 2008 increased by 1.2% over Jun 2008 due mainly to higher costs of housing and food.

Singapore Department of Statistics Press Release
http://www.singstat.gov.sg/news/news/cpijul2008.pdf

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