US puts Singapore on currency watch list

The Monetary Authority of Singapore said the exchange rate here is used to keep consumer price inflation low and stable, adding that "MAS does not and cannot use the exchange rate to gain an export advantage or achieve a current account surplus". ST PHOTO: ALPHONSUS CHERN

Singapore has been put on a currency watch list by the United States, along with eight other countries including China.

The Monetary Authority of Singapore has denied that Singapore manipulates its currency for export advantage, and has stressed that the exchange rate is used to keep prices stable in the Republic.

Economists say the impact of the US move on the Singapore economy looks to be limited in the short term, but it can expect greater scrutiny from the US from now on.

The countries on the watch list will be monitored to see if they are deliberately devaluing their currencies to sell more goods to the US. Those found to be currency manipulators could be slapped with trade sanctions by the US.

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A version of this article appeared in the print edition of The Straits Times on May 30, 2019, with the headline US puts Singapore on currency watch list. Subscribe