Chart of the Day: Official reserve assets grew to $424.8b in April

Singapore’s fiscal standing to remain sustainable.

This chart from UOB shows that the official reserve assets (ORA), which consist of foreign currencies, special drawing rights, International Monetary Fund reserves and gold, have grown substantially since the 1970s to $424.8b as of April.

The total amount of Singapore’s reserve remains classified however, as UOB notes that Singapore’s fiscal standing remains sustainable given its disciplined use of past reserves in history

However, the report adds that the government will propose a further $31b draw from past reserves amounting to a total of $52b drawn from reserves in the current financial year. Assuming that the full $52b is drawn from the ORA, it will bring the holdings down to $372.8 billion, translating to a healthy 9.2 months of import cover.