[h=1]Brexit: MAS says Singapore banking system remains sound[/h]SINGAPORE - The Monetary Authority of Singapore (MAS) said that Singapore's interbank money markets continue to function in an orderly manner and its banking system remains sound, following news of Britain's exit from the European Union.
The liquidity positions of the major banks in Singapore are healthy, and overall banking system liquidity remains adequate, MAS said. It said it will provide additional liquidity to the banking system if needed.
The trade-weighted Singapore dollar remains within its policy band, notwithstanding heightened volatility in international foreign exchange markets today. MAS stands ready to curb excessive volatility in the Singapore Dollar.
Singapore’s dollar fell, heading for its biggest decline in 10 months, after Britons voted to leave the European Union.
The local currency slid to the lowest in three weeks as the U.K. decision spurred concern global growth will slow. The Monetary Authority of Singapore, which guides the currency against a basket of major trading partners, said the trade-weighted local dollar remains within its policy band despite the heightened volatility in foreign-exchange markets. The pound tumbled to a 30-year low.
“The Singapore dollar depreciated when sterling was falling,” said Philip Wee, senior currency economist at DBS Group Holdings Ltd. in Singapore. “Generally, Brexit means a weaker global outlook.”
The local dollar slumped 1.2 percent to S$1.3537 to the greenback as of 4:47 p.m. Friday in Singapore, the biggest drop since August 2015, according to prices compiled by Bloomberg. The city-state’s bonds gained, with the yield on benchmark 10-year falling 11 basis points to 1.93 percent.
[h=3]Excessive Swings[/h]The MAS said it’s ready to curb excessive swings in the currency. Liquidity positions of the major banks in Singapore are healthy, and overall banking system liquidity remains adequate, it said.
“With MAS policy setting neutral at the moment, inflation still very low, there’s still a risk that the next move by MAS could still be easing,” said Khoon Goh, head of Asia research in Singapore at Australia & New Zealand Banking Group Ltd.
The liquidity positions of the major banks in Singapore are healthy, and overall banking system liquidity remains adequate, MAS said. It said it will provide additional liquidity to the banking system if needed.
The trade-weighted Singapore dollar remains within its policy band, notwithstanding heightened volatility in international foreign exchange markets today. MAS stands ready to curb excessive volatility in the Singapore Dollar.
Singapore’s dollar fell, heading for its biggest decline in 10 months, after Britons voted to leave the European Union.
The local currency slid to the lowest in three weeks as the U.K. decision spurred concern global growth will slow. The Monetary Authority of Singapore, which guides the currency against a basket of major trading partners, said the trade-weighted local dollar remains within its policy band despite the heightened volatility in foreign-exchange markets. The pound tumbled to a 30-year low.
“The Singapore dollar depreciated when sterling was falling,” said Philip Wee, senior currency economist at DBS Group Holdings Ltd. in Singapore. “Generally, Brexit means a weaker global outlook.”
The local dollar slumped 1.2 percent to S$1.3537 to the greenback as of 4:47 p.m. Friday in Singapore, the biggest drop since August 2015, according to prices compiled by Bloomberg. The city-state’s bonds gained, with the yield on benchmark 10-year falling 11 basis points to 1.93 percent.
[h=3]Excessive Swings[/h]The MAS said it’s ready to curb excessive swings in the currency. Liquidity positions of the major banks in Singapore are healthy, and overall banking system liquidity remains adequate, it said.
“With MAS policy setting neutral at the moment, inflation still very low, there’s still a risk that the next move by MAS could still be easing,” said Khoon Goh, head of Asia research in Singapore at Australia & New Zealand Banking Group Ltd.
