MAS ready to tackle excessive S$ volatility

The logo of the Monetary Authority of Singapore.
The logo of the Monetary Authority of Singapore.PHOTO: REUTERS

The Monetary Authority of Singapore (MAS) said yesterday that it is ready to curb excessive volatility in the Singapore dollar if needed, as it continues to monitor external developments and their impact on financial markets and the economy.

The central bank also said its policy stance remains as announced in October.

"MAS stands ready to curb excessive volatility in the trade- weighted Singapore dollar if needed," the bank said in a statement.

The comments came as the Singapore dollar slid to 1.4158 per US dollar, its weakest since Feb 4, as a wave of selling hit emerging-market assets.

The MAS said it does not target any bilateral exchange rate.

 
 

It also said the Singapore dollar nominal effective exchange rate remains well within its policy band, despite increased volatility in international foreign exchange markets over the last few days.

"Domestic money markets continue to function normally and there is ample liquidity in the system," the MAS added.

A version of this article appeared in the print edition of The Straits Times on November 12, 2016, with the headline 'MAS ready to tackle excessive S$ volatility'. Print Edition | Subscribe