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SM Goh cautions against over-strengthening Sing dollar
By Ryan Huang | Posted: 01 April 2011 2351 hrs
SINGAPORE : Senior Minister Goh Chok Tong on Friday said a stronger Singapore dollar will help mitigate imported inflation, but he is also wary about over-strengthening the currency.
He was speaking at a dialogue session at the Singapore Polytechnic, where he acknowledged the rising cost of living in Singapore.
He called it a perpetual problem that every generation would have to face every year, partly due to the country's growing economy.
Mr Goh's comments came ahead of the policy review meeting in mid-April by the Monetary Authority of Singapore, which he chairs.
The Sing dollar has been rising steadily against the US dollar over the past year, hitting new highs in recent weeks.
Senior Minister Goh, who is also the chairman of the Monetary Authority of Singapore, said: "On rising costs, this is a perpetual problem - every generation, every year, we are faced with the question of rising costs. Another word for this is inflation.
"Rising costs comes about in various ways - one of it is the cost of imported oil, food ... if costs go up both sides, it will therefore be hit by rising costs. Now, the solution for that will be a stronger Singapore dollar, provided the economy grows, then the dollar can be strong ...
"A stronger Singapore dollar will mitigate a rise in prices of goods imported into Singapore, but you can't let the Singapore dollar go up too much because that's going to affect your exports, then your exports become too expensive."
- CNA/al
By Ryan Huang | Posted: 01 April 2011 2351 hrs
SINGAPORE : Senior Minister Goh Chok Tong on Friday said a stronger Singapore dollar will help mitigate imported inflation, but he is also wary about over-strengthening the currency.
He was speaking at a dialogue session at the Singapore Polytechnic, where he acknowledged the rising cost of living in Singapore.
He called it a perpetual problem that every generation would have to face every year, partly due to the country's growing economy.
Mr Goh's comments came ahead of the policy review meeting in mid-April by the Monetary Authority of Singapore, which he chairs.
The Sing dollar has been rising steadily against the US dollar over the past year, hitting new highs in recent weeks.
Senior Minister Goh, who is also the chairman of the Monetary Authority of Singapore, said: "On rising costs, this is a perpetual problem - every generation, every year, we are faced with the question of rising costs. Another word for this is inflation.
"Rising costs comes about in various ways - one of it is the cost of imported oil, food ... if costs go up both sides, it will therefore be hit by rising costs. Now, the solution for that will be a stronger Singapore dollar, provided the economy grows, then the dollar can be strong ...
"A stronger Singapore dollar will mitigate a rise in prices of goods imported into Singapore, but you can't let the Singapore dollar go up too much because that's going to affect your exports, then your exports become too expensive."
- CNA/al
