Singapore Dollar - SGD

In the XIX century and until 1939, the currency used in Singapore was the « Straits dollar), and was put into circulation in all the Malaysian colonies of the British Empire.

A « Malay dollar » was then used until Singapore decided to be independent from Malaysia in 1965.

The Singapore dollar was created in 1967 on the basis of a fixed parity with the pound Sterling (601 SGD = 7 GBP) while the Malaysian “ringgit” was maintained until 1973 and while until today. It can now be exchanged into the Brunei Dollar.

At the beginning of the 70s, the Singapore dollar was indexed only on the American dollar for a short period, then from 1973 on a balanced currency basket used by the main trade competitors and partners of Singapore.

The system originally established by a « Board of Commissioners of Currency » lasted until the beginning of the XXI century under the authority of the MAS (Monetary Authority of Singapore), as the Singapore Dollar cannot deflect beyond or below +/-2% in comparison to the balanced currency basket whose main characteristics are kept  secret by the MAS.

When the SGD risks to go out of the fluctuation band secretly defined, the MAS directly intervenes on the Forex by massively selling or buying SGDs.

Strong currency in the Asian area, the Singapore dollar floats against the great world currency, in particular, against the American Dollar, in proportions that exceed the +/-2% fluctuation band.