MAS hit with sharp profit crash on back of negative currency translation effects

Blame it on the weak euro, yen.

Singapore’s central bank today reported that its net profit crashed to $281m during the financial year ended March 31, 2015, on back of negative currency translation effects.

The Monetary Authority of Singapore said that the negative translation effects arose as the Singapore dollar strengthened against the Euro and Yen by 17.6% and 6.7% respectively. This more than offset translation gains as the Singapore dollar weakened by 8.3% against the US dollar.

“The net profit for the year will not be returned to the Singapore Government but will be added to the Authority's reserves, in accordance with the Monetary Authority of Singapore Act,” MAS said.

The central bank also reported that total expenditure rose by 31.2% to $1.20 billion, stemming from the higher investment and interest expenses.

The central bank’s total assets increased by 1.8% to $387.39 billion during the financial year, mainly due to higher foreign financial assets and receivables.

Total liabilities increased in tandem, by 1.9% to $346.73 billion, as the currency-in-circulation grew and MAS bill issuance increased, partially offset by lower money market borrowings and deposits of financial institutions.