(Bloomberg) — Singapore’s central bank is likely to keep monetary policy unchanged Wednesday as it allows fiscal measures to do the heavy lifting in getting the city-state’s economy back on track.

The Monetary Authority of Singapore, which uses the currency as its main policy tool rather than interest rates, probably will refrain from changing any of the three currency band settings, according to all 19 economists surveyed by Bloomberg.



chart: Singapore Monetary Policy History


© Bloomberg
Singapore Monetary Policy History

The MAS — which typically makes policy decisions twice a year, in April and October — took the unprecedented step in its last announcement of lowering the midpoint of the currency band and reducing the slope to zero. That meant it would allow for a weaker exchange rate to head off deflation and support the export-reliant economy.

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Since then, the economy has plunged into recession amid the pandemic and the government has unleashed billions of dollars of stimulus to save businesses and jobs. The city-state is slowly starting to shake off the impact of mobility restrictions and exports have continued to gain, but the recovery is likely to be a slow one as international travel restrictions remain and global demand stays weak.

“We’ve not seen the full extent of the crisis” and as much as 20% of the economy will face “deep scarring from which they may not recover,” MAS Managing Director Ravi Menon said Monday during a virtual forum hosted by the Institute of International Finance.

While the city-state has likely seen the worst of the GDP downswing, Menon said non-performing loans and bankruptcies probably will rise through the start of 2021.

The government has forecast a 5%-7% contraction in the economy this year, the worst since independence more than a half-century ago, and may revise that estimate when the Ministry of

SINGAPORE: Singapore’s first institute dedicated to green finance research and talent development was launched on Tuesday (Oct 13) by the Imperial College Business School and Lee Kong Chian School of Business at Singapore Management University (SMU).

The institute is supported by the Monetary Authority of Singapore and its launch was announced by the central bank’s managing director Ravi Menon during his keynote speech at the Financial Times’ Investing for Good Asia conference.

“MAS is committed to developing a vibrant green finance research and talent ecosystem in Singapore,” he said. 

“The Singapore Green Finance Centre will be an important part of this ecosystem.” 

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The finance centre will draw on the strengths of Imperial College and SMU in climate science, financial economics and sustainable investing, MAS said in a joint news release with the two schools. 

The centre will pursue research that helps “develop strategies for policymakers and financial institutions to support Asia’s transition to a low carbon future”. 

The research will focus on three main themes: Transforming businesses by integrating climate-related data and environmental, social and governance considerations into decision-making; designing policies and new initiatives that can improve the efficiency of green finance markets; and catalysing the development of green finance solutions.

The centre also aims to equip professionals with new skills and develop a strong pipeline of green finance talent. It will offer courses across various levels – undergraduate, post-graduate, continuing and professional education. 

The institute will be jointly led by Professor David Fernandez, director of the Sim Kee Boon Institute for Financial Economics at SMU, and Dr Charles Donovan, Professor of Practice and executive director of the Centre for Climate Finance and Investment at Imperial College Business School.

LISTEN: Getting

(Bloomberg) — Singapore’s central bank is likely to keep monetary policy unchanged Wednesday as it allows fiscal measures to do the heavy lifting in getting the city-state’s economy back on track.

The Monetary Authority of Singapore, which uses the currency as its main policy tool rather than interest rates, probably will refrain from changing any of the three currency band settings, according to all 19 economists surveyed by Bloomberg.



chart: Singapore Monetary Policy History


© Bloomberg
Singapore Monetary Policy History

The MAS — which typically makes policy decisions twice a year, in April and October — took the unprecedented step in its last announcement of lowering the midpoint of the currency band and reducing the slope to zero. That meant it would allow for a weaker exchange rate to head off deflation and support the export-reliant economy.

Loading...

Load Error

Since then, the economy has plunged into recession amid the pandemic and the government has unleashed billions of dollars of stimulus to save businesses and jobs. The city-state is slowly starting to shake off the impact of mobility restrictions and exports have continued to gain, but the recovery is likely to be a slow one as international travel restrictions remain and global demand stays weak.

The government has forecast a 5%-7% contraction in the economy this year, the worst since independence more than a half-century ago, and may revise that estimate when the Ministry of Trade & Industry releases advance third-quarter figures on Wednesday. Analysts project gross domestic product rebounded an annualized 33.5% on a quarterly basis in the three months through September, while declining 6.8% from a year earlier, Bloomberg survey data show.



chart: Bouncing Back


© Bloomberg
Bouncing Back

Here’s a look at what’s expected in the central bank’s statement, which is due to be released at 8 a.m. local time on Wednesday:

Policy Band

The MAS

(RTTNews) – The Singapore stock market has finished higher in four straight sessions, gathering almost 50 points or 2 percent along the way. The Straits Times Index now sits just beneath the 2,545-point plateau and it may tick higher again on Wednesday.

The global forecast for the Asian markets is positive on rising oil prices and stimulus optimism in the United States. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The STI finished slightly higher on Thursday following mixed performances from the financials, properties and industrials.

For the day, the index rose 4.75 points or 0.19 percent to finish at 2,543.11 after trading between 2,526.32 and 2,546.17. Volume was 975 million shares worth 804.6 million Singapore dollars. There were 222 gainers and 156 decliners.

Among the actives, Thai Beverage surged 1.71 percent, while CapitaLand Mall Trust soared 1,55 percent, SembCorp Industries spiked 1.53 percent, Genting Singapore accelerated 1.45 percent, Comfort DelGro rallied 1.39 percent, CapitaLand Commercial Trust jumped 1.20 percent, Singapore Press Holdings climbed 0.97 percent, SATS gathered 0.96 percent, Dairy Farm International sank 0,76 percent, DBS Group advanced 0.72 percent, Mapletree Commercial Trust added 0.51 percent, Keppel Corp dropped 0.45 percent, Ascendas REIT gained 0.31 percent, Singapore Airlines shed 0.28 percent, Singapore Exchange rose 0.22 percent, United Overseas Bank lost 0.20 percent, Oversea-Chinese Banking Corporation eased 0.12 percent and Yangzijiang Shipbuilding, Wilmar International, Mapletree Logistics Trust, City Developments, Singapore Technology Engineering, SingTel and CapitaLand all were unchanged.

The lead from Wall Street is upbeat as stocks opened higher on Thursday and mostly remained in the green throughout the session, extending gains from the previous day.

The Dow added 122.05 points or 0.43 percent to finish at 28,425.51, while the NASDAQ gained 56.38 points or 0.50 percent to end at

SINGAPORE – Some of the world’s biggest banks in commodity trade financing are creating a digital trade finance registry in Singapore to try and mitigate the risk of trade fraud and boost transparency after losing billions of dollars due to a spate of defaults.

Banks have reduced their commodities business this year to cut risk following collapses, including that of Singapore’s Hin Leong Trading (Pte) Ltd, which shocked lenders after instances of financial trouble were laid bare by the coronavirus crisis.

In a joint statement issued on Tuesday, DBS Group DBSM.SI and Standard Chartered STAN.L said they are leading a group of 12 other banks in Singapore to create and conduct a central database to access trade transactions financed across banks.

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“A digital trade registry strengthens trade financing banks’ ability to avoid duplicate financing, and facilitates more sustained credit flow in trade financing,” said Ho Hern Shin, an assistant managing director at the Monetary Authority of Singapore.

Reuters first reported in July that banks are teaming up to strengthen lending practices and improve transparency in the sector.

Entrance to Standard Chartered Bank in the City of London. Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries. It is a universal bank and has ope

The registry’s proof of concept is supported by Enterprise Singapore (ESG), a government agency that promotes trade, and endorsed by the main representative body of banks.

“This mitigates against duplicate financing from different bank lenders for the same trade inventory, leading to greater trust and confidence among banks and traders alike,”