MAS: Singdollar stands firm

Singapore Dollar will remain strong amidst China's announcement on weekend that it will give the Yuan more space for flexibility.

"The People's Bank of China’s announcement will not have an impact on Singapore’s exchange rate regime," said the Monetary Authority of Singapore.

The PBC made an announcement which was welcomed globally, the United States included, saying it will proceed further with reform of the Renminbi (RMB) exchange rate regime and enhance RMB exchange rate flexibility.

The MAS affirmed that the policy of a modest and gradual appreciation of the S$NEER policy band it announced on 14 April 2010 remains unchanged and is appropriate against underlying economic conditions.

In a statement released Monday, the MAS said it will continue to be vigilant over developments in the external environment and their impact on the domestic economy, and stands ready to curb excessive volatility in the S$NEER.

Recent reports showed Asian currencies and stocks have risen but the Chinese Yuan showed off a thundering achievement as it jumped to an outstanding 21-month high on Monday.