MAS Forex operations suffer $10.9 billion loss. Worse in 40 years.

[Papsmearer]

Wah lau, Ravi, must be damn tulan. Asked to become head of MAS and than have the biggest losss on his watch. Heng Swee Keat fuck off and left the shit in Ravi's lap. I am sure ravi already know the extend of the losses when he was deputy top shit at MAS, but still, makes him look bad. Looks like this time, the currency manipulation and speculation backfired.

SINGAPORE: The Monetary Authority of Singapore (MAS) has recorded its biggest loss in 40 years on the back of a strong Singapore dollar.

MAS has recorded a net loss of S$10.9 billion for its fiscal year ended March 2011. This compared to a record net profit of S$10 billion posted last year.

The central bank said excluding exchange rate effects, it achieved income and net capital gains totalling S$12.3 billion during the financial year ended March 2011.

MAS disclosed these figures in its latest annual report released Thursday.

The loss comes as the foreign exchange impact from the stronger Singapore dollar exceeded the interest, dividend and valuation gains on foreign assets held.

Most of MAS's assets comprise official foreign reserves.

These are invested in a diversified range of foreign currency assets.

During the year, the Singapore dollar appreciated against most currencies including the US dollar, Euro and Sterling Pound, but weakened against the Yen.

The total assets of the central bank, including the Currency Fund, grew by S$13.85 billion to S$299.75 billion in the financial year ended 31 March 2011.

In 2010, MAS tightened its monetary policy as the economy strengthened. It shifted to a modest and gradual appreciation of the exchange rate policy band in April 2010.

Further tightening was undertaken in October 2010 and April 2011 as growth became more entrenched and resource constraints more binding.

MAS said the tighter monetary policy stance will ensure price stability over the medium term and keep growth on a sustainable path.

In the chairman's message of the annual report, Deputy Prime Minister Tharman Shanmugaratnam said that "the ongoing sovereign debt crisis in the European periphery poses significant risks - both to global economic growth and financial stability."

Mr Shanmugaratnam added that Singapore faces a changed financial landscape globally following the crisis of 2008-2009, and that the regulatory approach in Singapore will "evolve, whilst retaining the close monitoring and supervision of financial institutions that ensures that our financial system remains resilient and stable."

In the capital markets MAS implemented several safeguards for investors such as guidelines on the form and content of the Product Highlights Sheet.

MAS said it will also implement changes to fund management regulation, aimed at raising the quality of players and enhancing regulatory oversight to enable sustained growth of the industry.

Going forward Mr Shanmugaratnam said MAS will continue to support the development of Singapore as an international financial centre "trusted for its high standards of regulation, integrity and efficiency."

- CNA/cc

 

[GeylangCheongster]

Heng Swee Keat says heng ah......

 

[halsey02]

Heng Swee Keat says heng ah......

He was in charge...

 

[melzp]

UNBELIEVABLE.................on the back of strong Sing$$ some more.

Intersestingly, the management committee are all TOP GUNS/ CANNON materials.

There must be a BOARD OF INVESTIGATIONS to this matter; $10 B is no joke.

So, if these bunch(who are now running the country), let alone a PTE CO, there is
cause for worry and concern.

 

[shOUTloud]

Can we suspend the bonuses for all MAS staff this year? Just to see how fast these rats jump from the ship?

 

[Papsmearer]

He was in charge...

Yes, he was in charge, but you don't see Heng SK standing up there and making this announcement. ravi kenna for this one. Ravi cannot say "Don't shoot the newsbearer" or "not my fault, I was not in charge at that time". Anyway, Ravi is a real spin doctor, and will have many excuses that even Heng cannot come up with. I know genetically, keklings are real gift of the gab smokers, but Ravi is the most exceptional I ever met.

 

[Papsmearer]

UNBELIEVABLE.................on the back of strong Sing$$ some more.

Intersestingly, the management committee are all TOP GUNS/ CANNON materials.

There must be a BOARD OF INVESTIGATIONS to this matter; $10 B is no joke.

So, if these bunch(who are now running the country), let alone a PTE CO, there is
cause for worry and concern.

Good luck into this. There will never be an investigation. Tharm is the chairman, and MAS reports to the PMO, like as if they will investigate MAS, and make themselves look like fools. MAS has on several occasions been warned by IMF to stop speculating in currency for profit. This time, they bet against the market and lost $10.9 billion. If TT was a truly independent President, he would call for an investigation due to the fact that this loss has impacted the National reserves, and also possible corruption issues. But we can all fantasize, right?

 

[Char_Azn]

UNBELIEVABLE.................on the back of strong Sing$$ some more.

Intersestingly, the management committee are all TOP GUNS/ CANNON materials.

There must be a BOARD OF INVESTIGATIONS to this matter; $10 B is no joke.

So, if these bunch(who are now running the country), let alone a PTE CO, there is
cause for worry and concern.

Actually the lose money precisely because the SGD$ went up.

Look at this statement

Most of MAS's assets comprise official foreign reserves.

Translation, if your asset are in USD$, when SGD$ goes up, the value of you asset will go down and vice versa.

The reason why they "loss money" is because they allow the SGD$ to go up.

If U work for an MNC it actually works the same way. I currently work for a French company, when the group consolidate their statement, they all convert back to Euros. When the Euros started falling, the profit shot up.

 

[lockeliberal]

Dear Char,

Technically, the loss is just a paper loss. Would PAP or the others be cheering the MAS if it made a profit when the exchange rate moves in its favor ?

Whilst I would hold Temasek and GIC as guardian's of assets and reserves to a higher accountability of loss and profit , the same cannot hold for MAS.

They are by definition a central bank and they have to hold large amounts of foreign currency cash reserves for the purpose of exchange and to maintain it for purchases of goods. To the extent that they have suffered a loss I would ask only why they did not hedge the downside of their USD exposure.


Locke









QUOTE=Char_Azn;777347]Actually the lose money precisely because the SGD$ went up.

Look at this statement



Translation, if your asset are in USD$, when SGD$ goes up, the value of you asset will go down and vice versa.

The reason why they "loss money" is because they allow the SGD$ to go up.

If U work for an MNC it actually works the same way. I currently work for a French company, when the group consolidate their statement, they all convert back to Euros. When the Euros started falling, the profit shot up.[/QUOTE]

 

[wikiphile]

I don't think this is end of the story, to make such a big loss will likely be forex hedging went very wrong and nobody is saying anything about this.

 

[Papsmearer]

Actually the lose money precisely because the SGD$ went up.

Look at this statement



Translation, if your asset are in USD$, when SGD$ goes up, the value of you asset will go down and vice versa.

The reason why they "loss money" is because they allow the SGD$ to go up.

If U work for an MNC it actually works the same way. I currently work for a French company, when the group consolidate their statement, they all convert back to Euros. When the Euros started falling, the profit shot up.

Have u heard of Hedging or not? Your company better start doing that before they get taken to the cleaners in forex losses. Like wise MAS should have done that too. Central banks like the MAS usually lose money when they have to prop up their own currency by buying back their own money to support it. Never have I heard of a central bank losing money when their currency appreciates.

 

[Papsmearer]

Dear Char,

Technically, the loss is just a paper loss. Would PAP or the others be cheering the MAS if it made a profit when the exchange rate moves in its favor ?

Whilst I would hold Temasek and GIC as guardian's of assets and reserves to a higher accountability of loss and profit , the same cannot hold for MAS.

They are by definition a central bank and they have to hold large amounts of foreign currency cash reserves for the purpose of exchange and to maintain it for purchases of goods. To the extent that they have suffered a loss I would ask only why they did not hedge the downside of their USD exposure.


Locke









QUOTE=Char_Azn;777347]Actually the lose money precisely because the SGD$ went up.

Look at this statement



Translation, if your asset are in USD$, when SGD$ goes up, the value of you asset will go down and vice versa.

The reason why they "loss money" is because they allow the SGD$ to go up.

If U work for an MNC it actually works the same way. I currently work for a French company, when the group consolidate their statement, they all convert back to Euros. When the Euros started falling, the profit shot up.

[/QUOTE]

U obviously don't know the function of this central bank. The MAS is unique among central banks of the world because they are treated as a profit centre. MAS plays the currency market like any trader would play it on CBT or COMEX, and makes money by speculation, just like Soros or anyone like that. The IMF has on several occasions warned the MAS against this as they are contributing to destabilizing the world currency market thru this speculation, rather stabilzing it as a central bank should do.

 

[Papsmearer]

I don't think this is end of the story, to make such a big loss will likely be forex hedging went very wrong and nobody is saying anything about this.

Yes, I agree with you. ONe of the main function of Central banks is currency risk management thru hedge instruments. Donch know what when wrong here. SOmeone must ask Ravi. ANyway, they receive 62% salary and bonus increase dispite this loss, go figure.

 

[Forvendet]

UNBELIEVABLE.................on the back of strong Sing$$ some more.

The loss is exactly due to the strong Sing$. It actually benefits rich folks who travel abroad or import. There's not much real loss in terms of purchasing power parity. Sing foreign holdings fall in value relative to Sing$ but Sing$ is now worth more and can now buy evenmore foreign holdings. Of course, it still needs management. Buying too much of something that's going the way of worthless will cost you money regardless how strong is your currency.

 

[Papsmearer]

The loss is exactly due to the strong Sing$. It actually benefits rich folks who travel abroad or import. There's not much real loss in terms of purchasing power parity. Sing foreign holdings fall in value relative to Sing$ but Sing$ is now worth more and can now buy evenmore foreign holdings. Of course, it still needs management. Buying too much of something that's going the way of worthless will cost you money regardless how strong is your currency.

This is not the first time Sin$ has appreciated. MAS should have done a better job managing inflation, sell more sing $ and lower the exchange rate between sing $ and other currencies. A lot of countries like canada and australia have seen their currency appreciate against the US $ and Euro. DO you see their central banks lose $11 billion over exchange ops?

 

[steffychun]

This is much smaller than the annual debt that the UK has.

Be thankful that Singapore is not pledging to spend 0.7% of its GNI on foreign aid.

 

[Papsmearer]

This is much smaller than the annual debt that the UK has.

Be thankful that Singapore is not pledging to spend 0.7% of its GNI on foreign aid.

Don't be an idiot, Singapore spends much more than that on foreign aid. In fact, it spend billions $ in foreign aid, to US and Swiss banks that are sinking. Even the US govt. will not come to the aid of these banks until SIngapore spends money on them. Our aid is not in the form of food and money for poor and starving people in Africa, rather its in the form of money spend on greedy wall street bankers so they can continue to live well and enjoy their golden parachutes.

 

[batman1]

Got money to lose billions in foreign exchange losses BUT no money to pay the singaporean retirees at 55yo ALL their CPF retirement money and also demolishing and scrapping the stupid minimum sum scheme just to hold back the CPF money from the singaporean retirees by the satanic MIW!