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Singapore May Devalue Currency

Buy HK dollar today......change 3K @ 5.07......not bad a rate.....

KIMPEK      ( Date: 01-Apr-2009 17:40) Posted: Can we invest in Foreign currency like A$ and Sterling pound now??? Please advise!!! Thank you   Best regards     Kim   Laulan      ( Date: 01-Apr-2009 14:36) Posted: It is too great a risk to take to devalue the SGD.  Once you crack the glass, it may or might not be repaired.  Sure you could recraft your damaged item, but it will be a different world for Singapore's economy.  We just don't like to follow the Indonesians whose everything is so cheap.  We can't follow Malaysia whose cheap currency serves the tourist who spend visiting the many natural and beautiful and historic places.  If we devalue of our currency, our good advantage is the foreigners will come to gamble in our two Integrated resorts. Wow, won't that be nice?  If we are looking for cheap income from the IRs' businesses after spending so expensively? Anyway, we must consider every nooks and corners rather than sweeping everything under the carpets and still say nothing is wrong with that. We can do with allowing free float of our currency, but we must not allow to fall into the trap of analysts trying to do us in.  We want to create cheaper exports? Buyers go for cheap but have to consider quality. Thus we must increase our production capabilities and our ability to make better products. We must spend more on research and development for the various industries that are export oriented. Look at the US and China's currency policy.  They are very smart, I think, preferring to stabilize if not putting clear messages about their currencies and not allowing speculators to tell them what to do. I hope MAS think very carefully if they are comtemplating anything beyond just allowing a free float with a watchful eye over the currency's status quo.

 

buy G.O.L.D..............

 

Can we invest in Foreign currency like A$ and Sterling pound now???

Please advise!!!

Thank you

 

Best regards

 

 

Kim

 

Laulan      ( Date: 01-Apr-2009 14:36) Posted: It is too great a risk to take to devalue the SGD.  Once you crack the glass, it may or might not be repaired.  Sure you could recraft your damaged item, but it will be a different world for Singapore's economy.  We just don't like to follow the Indonesians whose everything is so cheap.  We can't follow Malaysia whose cheap currency serves the tourist who spend visiting the many natural and beautiful and historic places.  If we devalue of our currency, our good advantage is the foreigners will come to gamble in our two Integrated resorts. Wow, won't that be nice?  If we are looking for cheap income from the IRs' businesses after spending so expensively? Anyway, we must consider every nooks and corners rather than sweeping everything under the carpets and still say nothing is wrong with that. We can do with allowing free float of our currency, but we must not allow to fall into the trap of analysts trying to do us in.  We want to create cheaper exports? Buyers go for cheap but have to consider quality. Thus we must increase our production capabilities and our ability to make better products. We must spend more on research and development for the various industries that are export oriented. Look at the US and China's currency policy.  They are very smart, I think, preferring to stabilize if not putting clear messages about their currencies and not allowing speculators to tell them what to do. I hope MAS think very carefully if they are comtemplating anything beyond just allowing a free float with a watchful eye over the currency's status quo.   idesa168      ( Date: 01-Apr-2009 13:20) Posted: It depends how you see it. In short term, yes, devalue will turn investors off. But for long term, the cheaper S$ makes S'pore more competitive. Export mkt will suffers then.

 

It is too great a risk to take to devalue the SGD.  Once you crack the glass, it may or might not be repaired.  Sure you could recraft your damaged item, but it will be a different world for Singapore's economy.  We just don't like to follow the Indonesians whose everything is so cheap.  We can't follow Malaysia whose cheap currency serves the tourist who spend visiting the many natural and beautiful and historic places.  If we devalue of our currency, our good advantage is the foreigners will come to gamble in our two Integrated resorts. Wow, won't that be nice?  If we are looking for cheap income from the IRs' businesses after spending so expensively?

Anyway, we must consider every nooks and corners rather than sweeping everything under the carpets and still say nothing is wrong with that. We can do with allowing free float of our currency, but we must not allow to fall into the trap of analysts trying to do us in. 

We want to create cheaper exports? Buyers go for cheap but have to consider quality. Thus we must increase our production capabilities and our ability to make better products. We must spend more on research and development for the various industries that are export oriented.

Look at the US and China's currency policy.  They are very smart, I think, preferring to stabilize if not putting clear messages about their currencies and not allowing speculators to tell them what to do.

I hope MAS think very carefully if they are comtemplating anything beyond just allowing a free float with a watchful eye over the currency's status quo.

 

idesa168      ( Date: 01-Apr-2009 13:20) Posted: It depends how you see it. In short term, yes, devalue will turn investors off. But for long term, the cheaper S$ makes S'pore more competitive. Export mkt will suffers then.

 

It depends how you see it. In short term, yes, devalue will turn investors off. But for long term, the cheaper S$ makes S'pore more competitive. Export mkt will suffers then.

 

Devaluation of a currency will discourage foreign investors putting money in your bank or the stock market.  Who wants to invest his money so that you know it will be in lesser amount than your original investments? Maths come into play.

What Singaporean will benefit by selling cheaper services and products? Yes it only cuts into your slim profits, but the govt will give you money hoh?

Do importers prefer a cheaper shipment or more expensive ones?

All these are matters that must be considered before saying that devaluation is good.  We must defend our dollar and make it sing for those who wants to invest in Singapore and not to make it sink for them.

Hahaha.

 

Can it also mean cheaper for oversea investors to buy Sing $ stock ?

 

devaluation is to help local export out.. if wont collapse the stock mkt leh!

Laulan      ( Date: 01-Apr-2009 12:14) Posted: If there is really a devaluation, our stock market will collapse.  So pray, my friend, that it is not true.

 

If there is really a devaluation, our stock market will collapse.  So pray, my friend, that it is not true.

 

Ha ha, may be go for tour is much cheaper now than later loh. Same apple princ.

 

easy.....

last time .. 6 apples cost $2/-

now ... 5 apples cost $2/-

later ... 4 apples will cost $2/- ..

 

There will be impact on consumers because we import most of our needs.

Unfortunately, because MAS doesn't publish any info on SGD's trade weighted index (meaning the relationship of SGD against a basket of other currencies), it is hard to tell how the devaluation (if it occurs) will affect our cost of living.

 

 

 

It is like saying .... buy less imported goods....but what is local made anyway.....Harddisk for dinner ??

Anyway, I am buying local produce eggs these days....bigger, more fresh....the yolk don't break easily...got expiry date stated and twice the price of imported eggs.....

 

 

Hulumas      ( Date: 31-Mar-2009 09:35) Posted: However, the logic is there. Andrew      ( Date: 30-Mar-2009 23:05) Posted: Bloomberg today reported that Singapore May Devalue Currency by 4%.  It is a rumour again but it is in A1 column.  And MAS has not made any announcement. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGkR0DLAxNk0

 

Foreign goods will be more expensive... 

Yikes.... not good for consumers. 

 

Alamah, AK keeping countrys' currencies notes n coins, which I had visited. Look like I need lelong my old spore notes liao. Ha ha, may be during d weekends, sqding at Sungai Road junk sales areas liao. 

 

However, the logic is there.

Andrew      ( Date: 30-Mar-2009 23:05) Posted: Bloomberg today reported that Singapore May Devalue Currency by 4%.  It is a rumour again but it is in A1 column.  And MAS has not made any announcement. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGkR0DLAxNk0

 

But MAS has never openly mentioned a predefined trade band for this matter.

And what is the problem with devaluation ? Textbook say, if you can devalue once, you will doing twice and thrice.

Reporter are fast these days....  This is indeed a big news for us which is import intensive.

 

 

edwinders      ( Date: 30-Mar-2009 23:16) Posted: The Monetary Authority of Singapore may devalue the city state’s currency and allow it to drop 4% by the end of June to aid exporters and lift the economy out of its worst recession since independence in 1965. The central bank will shift the mid-point of the Singapore dollar trading band at a twice-yearly review in April, according to 15 of 17 economists surveyed by Bloomberg News. The currency is “extremely and ridiculously overvalued,” Patrick Bennett, Asia foreign-exchange strategist at Societe Generale SA in Hong Kong, said last week. Singapore’s exports fell for a 10th month in February as global demand for electronics and drugs tumbled and the government forecasts gross domestic product will shrink as much as 5% this year. Exporters are losing out to regional rivals after the currency weakened 6% in the past six months, compared with losses of 17% in the Indonesian rupiah and 12% in South Korea’s won. “The central bank’s objective is to restore a measure of competitiveness,” said Wei Zheng Kit, a Singapore-based economist at Citigroup Inc., the world’s fourth-biggest currency trader. “A one-off depreciation will achieve this objective.” Kit said the MAS may not allow much weakness in the currency after the devaluation because it wants to avoid damaging investor confidence. Singapore’s central bank conducts monetary policy by adjusting the centre, slope or width of an undisclosed band in which the currency is allowed to fluctuate. Quoted from Edge Singapore

 

The Monetary Authority of Singapore may devalue the city state’s currency and allow it to drop 4% by the end of June to aid exporters and lift the economy out of its worst recession since independence in 1965.

The central bank will shift the mid-point of the Singapore dollar trading band at a twice-yearly review in April, according to 15 of 17 economists surveyed by Bloomberg News.

The currency is “extremely and ridiculously overvalued,” Patrick Bennett, Asia foreign-exchange strategist at Societe Generale SA in Hong Kong, said last week.

Singapore’s exports fell for a 10th month in February as global demand for electronics and drugs tumbled and the government forecasts gross domestic product will shrink as much as 5% this year. Exporters are losing out to regional rivals after the currency weakened 6% in the past six months, compared with losses of 17% in the Indonesian rupiah and 12% in South Korea’s won.

“The central bank’s objective is to restore a measure of competitiveness,” said Wei Zheng Kit, a Singapore-based economist at Citigroup Inc., the world’s fourth-biggest currency trader. “A one-off depreciation will achieve this objective.”

Kit said the MAS may not allow much weakness in the currency after the devaluation because it wants to avoid damaging investor confidence. Singapore’s central bank conducts monetary policy by adjusting the centre, slope or width of an undisclosed band in which the currency is allowed to fluctuate.

Quoted from Edge Singapore

 

Bloomberg today reported that Singapore May Devalue Currency by 4%.  It is a rumour again but it is in A1 column.  And MAS has not made any announcement.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGkR0DLAxNk0