This process effectively weakens the Singapore dollar.
French international bank BNP Paribas reckons Singapore’s central bank is likely to keep its monetary policy unchanged at its next meeting scheduled on Oct 14.
This is as the Monetary Authority of Singapore (MAS) had just reduced the slope of its S$NEER (Singapore Dollar Nominal Effective Exchange Rate) to zero, and re-centred the bands down by 100 basis points in its last policy review in March 2020, note Marcus Loh and Chandresh Jain from the bank’s Emerging Markets Asia team.
