MAS lost $10 billion

[LITTLEREDDOT]

[h=1]Strong Singapore dollar sends MAS into overall loss for year ended March[/h][h=2][/h]
By Yasmine Yahya

<!--start of story text-->The Monetary Authority of Singapore (MAS) recorded an overall loss of $10.6 billion for the year ended March 2013, after taking into account the translation effects from an stronger Singapore dollar.
"We made good investment returns but when measured in Singapore dollars, these gains were more than offset by the strength of the currency," said MAS managing director Ravi Menon at the release of the central bank's annual report on Tuesday.
The central bank made investment gains of $8.9 billion for the year, down from $12 billion the year before, due mainly to lower interest income as interest rates declined.
Meanwhile, Mr Menon said the Singapore economy will "comfortably meet" the central bank's forecast of a 1 to 3 per cent expansion this year on the back of a gradual recovery in the external environment.
<!--end of story text-->

 

[I_Hate_Pappies]

[h=1]Strong Singapore dollar sends MAS into overall loss for year ended March[/h][h=2][/h]
By Yasmine Yahya

<!--start of story text-->The Monetary Authority of Singapore (MAS) recorded an overall loss of $10.6 billion for the year ended March 2013, after taking into account the translation effects from an stronger Singapore dollar.
"We made good investment returns but when measured in Singapore dollars, these gains were more than offset by the strength of the currency," said MAS managing director Ravi Menon at the release of the central bank's annual report on Tuesday.
The central bank made investment gains of $8.9 billion for the year, down from $12 billion the year before, due mainly to lower interest income as interest rates declined.

Meanwhile, Mr Menon said the Singapore economy will "comfortably meet" the central bank's forecast of a 1 to 3 per cent expansion this year on the back of a gradual recovery in the external environment.
<!--end of story text-->

A lost is a lost, don't bullshit. :oIo::kma:

 

[Narong Wongwan]

What type of investments? Aren't central banks supposed to go for low risk type of investments mainly for hedging purposes?
One sentence report and that's it? 10 billion bucks.
Who made the call, no one need to account?

 

[jw5]

There is a place where they can get back the 10 billion toothpicks.

 

[watchman8]

A lost is a lost, don't bullshit. :oIo::kma:

MAS is central bank and holds foreign reserves. Hence the forex lost if convert to singapore dollars. If MAS make a lost as measured in USD or a basket of currencies, then we need to worry.

 

[halsey02]

MAS is central bank and holds foreign reserves. Hence the forex lost if convert to singapore dollars. If MAS make a lost as measured in USD or a basket of currencies, then we need to worry.

I have very high regards for MAS...how could they as a central banker losses 10 billion? nvm, they can borrow from the perpectual bank in SINgapore, Central Perpetual Fund...easily 10 bn can cover in no time...ha ha ha just ask PAUL!

 

[watchman8]

I have very high regards for MAS...how could they as a central banker losses 10 billion? nvm, they can borrow from the perpectual bank in SINgapore, Central Perpetual Fund...easily 10 bn can cover in no time...ha ha ha just ask PAUL!

MAS keeps bulk of assets in foreign currency, like usd govt bonds, EU bonds etc. that's why the account is called foreign reserves. Economic 101 hor.

Naturally, if sgd strengthen, then all these foreign assets will automatically be lower in sgd terms.

If sgd weakens, then MAS will show a nice profit without doing anything.

All just paper play. Not like the bank investments by temasick. That one is real loss.

 

[halsey02]

MAS keeps bulk of assets in foreign currency, like usd govt bonds, EU bonds etc. that's why the account is called foreign reserves. Economic 101 hor.

Naturally, if sgd strengthen, then all these foreign assets will automatically be lower in sgd terms.

If sgd weakens, then MAS will show a nice profit without doing anything.

All just paper play. Not like the bank investments by temasick. That one is real loss.

I know MAS, but I am bewildered even if it is a paper loss or?...very unusual for MAS...the institution that I really do admire...they might have too many of the 'dark colored kind' inside...

 

[Narong Wongwan]

MAS keeps bulk of assets in foreign currency, like usd govt bonds, EU bonds etc. that's why the account is called foreign reserves. Economic 101 hor.

Naturally, if sgd strengthen, then all these foreign assets will automatically be lower in sgd terms.

If sgd weakens, then MAS will show a nice profit without doing anything.

All just paper play. Not like the bank investments by temasick. That one is real loss.

Aren't they supposed to do hedging to prevent such things?
It is not paper play anymore if the sgd keeps strengthening right?

 

[Froggy]

Knnbccb made good investments but still lost money, knnbccb talk like a farking indian!

 

[AhGuan]

I think they park the reserves in EUR, USD denominated govt bonds. When yields are converted back to a strong SGD, they lose in FX.

Also, the interest rates have been edging up. Bond prices collapsing. So mark-to-market, the bond portfolio has been losing money and the yields earned are not enough to compensate for the capital losses. Will lose more if global interest rates go up higher.

 

[yinyang]

..reserves in EUR, USD denominated govt bonds. When yields are converted back to a strong SGD, they lose in FX.

Right, holdings in yen, euro with currency depreciation vs SGD. Compensates even with good valuations. Akin to changing money to home

http://www.todayonline.com/business/mas-posts-s10b-net-loss-singapore-dollar-soars

Relevant extract:
The Singapore dollar gained 13.8 per cent against the yen and 6.2 per cent against the euro in the 12 months to March, the MAS said. During the same period, the Singapore dollar rose 5.1 per cent versus the British pound and 1.3 per cent against the dollar.

 

[Unrepented]

Just give more indepth explanation of the losses by MAS lah. Don't need wonder off and talk about Singapore economy as if he is solely in-charge of it

[h=1]Strong Singapore dollar sends MAS into overall loss for year ended March[/h][h=2][/h]
By Yasmine Yahya

<!--start of story text-->The Monetary Authority of Singapore (MAS) recorded an overall loss of $10.6 billion for the year ended March 2013, after taking into account the translation effects from an stronger Singapore dollar.
"We made good investment returns but when measured in Singapore dollars, these gains were more than offset by the strength of the currency," said MAS managing director Ravi Menon at the release of the central bank's annual report on Tuesday.
The central bank made investment gains of $8.9 billion for the year, down from $12 billion the year before, due mainly to lower interest income as interest rates declined.
Meanwhile, Mr Menon said the Singapore economy will "comfortably meet" the central bank's forecast of a 1 to 3 per cent expansion this year on the back of a gradual recovery in the external environment.
<!--end of story text-->

 

[watchman8]

Aren't they supposed to do hedging to prevent such things?
It is not paper play anymore if the sgd keeps strengthening right?

If MAS hedge out currencies back to sgd, then what's the purpose of foreign reserves? MAS also need to park some money with IMF. Go read up on economics 101.

MAS is not the place to find worms, as its open book to all. Spend your time on GIC and temasick, where almost everything is state secret.

 

[Narong Wongwan]

If MAS hedge out currencies back to sgd, then what's the purpose of foreign reserves? MAS also need to park some money with IMF. Go read up on economics 101.

MAS is not the place to find worms, as its open book to all. Spend your time on GIC and temasick, where almost everything is state secret.

Here so many experts so save the time to read.
Might not comprehend fully even after reading for a layman like me.
So 10 billion yearly losses is the norm for central banks? Attribute to currency strength then case close?

 

[watchman8]

Here so many experts so save the time to read.
Might not comprehend fully even after reading for a layman like me.
So 10 billion yearly losses is the norm for central banks? Attribute to currency strength then case close?

There is no norm. It depends on size of foreign reserves and forex movement. Basically can't be help as country needs to maintain certain foreign reserves. This time is loss, but next year will be gain if sgd depreciate.

If sgd depreciates, MAS will have record profit, but sinkies will be poorer due weaker sgd. LPPL.

 

[soIsee]

A lost is a lost, don't bullshit. :oIo::kma:

And who better to twist the words than to get a ah neh snake to say it.

With them, every loss can be 'talked up' to make it looked like a BIG GAIN! LOL

 

[GOD IS MY DOG]

this is not a loss lah..............just that value of reserves dropped.................there's always a floating loss and profit..............


unless the MAS start buying and selling then different................

 

[halsey02]

Here so many experts so save the time to read.
Might not comprehend fully even after reading for a layman like me.
So 10 billion yearly losses is the norm for central banks? Attribute to currency strength then case close?

Is MAS a central bank, that is question beg to be ask?? anyway, the years I know MAS when I was working, never heard of them making losses in anything...if MAS is making losses, then GIC, TEM...??? no wonder they need a world class crier to look after...where in the entire world the smartest, most educated , cannot qualify...we have PAUL...& then to guard the keys we have Anthony...gee! we have gone to the dogs..

 

[GoldenDragon]

Who's responsible for this fiasco? No heads to roll?