0
MAS may weaken S$
Posted by Economics Corner
on
8:54 AM
This article appeared on the Straits Times on the 31st March.
Economists say the combined pressures of a deepening recession and collapsing exports mean the MAS will probably allow the currency to fall further in value against other currencies. A weaker Singdollar would make exports more attractive, but would also mean that imports and trips overseas for Singaporeans may become more expensive.
The MAS conducts monetary policy through exchange rate adjustments, which it carries out by trading the Singdollar within an undisclosed band.
Points to ponder on:
1. What is the term used to describe the fall of the currency in value against other currencies?
2. How will the weaker Singdollar affect our terms of trade and balance of payment?
3. How is exchange rate adjustments made by the MAS?
Economists say the combined pressures of a deepening recession and collapsing exports mean the MAS will probably allow the currency to fall further in value against other currencies. A weaker Singdollar would make exports more attractive, but would also mean that imports and trips overseas for Singaporeans may become more expensive.
The MAS conducts monetary policy through exchange rate adjustments, which it carries out by trading the Singdollar within an undisclosed band.
Points to ponder on:
1. What is the term used to describe the fall of the currency in value against other currencies?
2. How will the weaker Singdollar affect our terms of trade and balance of payment?
3. How is exchange rate adjustments made by the MAS?
