Singapore’ central bank said that its exchange rate-based monetary policy remains unchanged as the coronavirus outbreak further weakened global economic growth. They furthered that its policy stance remains appropriate as the currency has room to ease within its current settings.
Following its lowest growth rate in a decade last year, Singapore had said that the virus that has affected their island nation would be further hit in 2020.
Meanwhile, the Monetary Authority of Singapore (MAS) said on Wednesday its currency gauge had been trading near the top of its policy band which solidified their confidence that it has room to depreciate in order to accommodate any economic impact.
“There is sufficient room within the policy band to accommodate an easing of the Singapore Dollar Nominal Effective Exchange Rate in line with the weakening of economic conditions as a result of the outbreak of the 2019 novel coronavirus in China and other countries, including Singapore,” the MAS said.
As it continued to closely watch any further developments, the MAS said that its next policy review would be in April as scheduled.