Although no currency can brag of absolute growth consistency and stability, the Singapore dollar is just about the ideal currency when it comes to matters such as these. Its rates against other world currencies, most notably the US dollar, have maintained a steady rise in recent times with an increase of close to two percent in the last year alone. Currently trading at 1.3 to 1.5 against the green buck, which, as of last year is the third best performance of an Asian currency, (excluding the Japanese Yen, of course). It is easily a safe haven dollar for American investors.
Perhaps the biggest contributing factor to this currency’s strength is the diverse economy. It is easy to notice that the Singapore economy is not dependent on the traditional raw materials like oil and minerals, which are good sources of revenue, but can be very unreliable due to the fluctuations in their respective world markets. The country instead depends on other more modern markets like tourism and airline industries as well as foreign exchange which have proved to be much more reliable exchange earners in recent economic times. This has propelled the Singapore dollar to being a formidable currency, not just in Asia, but in the entire world.
Recently last year, the Monetary Authority of Singapore began an aggressive campaign of strengthening the Singapore dollar against other foreign currencies in a bid to contain price inflation. This was primarily a result of fast economic growth. This plan has been seen to further strengthen the currency over the last year with experts predicting even more of the in the coming year as more growth is anticipated in the country. As people begin to discover Singapore, so to speak, its strength against the “usual suspects” in the foreign exchange market continues to be food for thought for many an expert.
However, it is always priceless to remember that for a currency to continue to be a safe haven for along time such as the Singapore is widely considered to be doing, a host of other factors come into play. It is therefore unwise to make any conclusive statement on the currency, on any other because things can change very drastically even in just a few hours! Even so, The Singapore dollar is proving to be a force to reckon with in the market, at least so far.
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