Singapore Dollar (SGD) in Forex

The Singapore dollar (SGD) is the official currency of Singapore.

Its international currency code is SGD, and one Singapore dollar is divided into 100 cents.

Who Manages the Currency

Singapore's monetary authority is the Monetary Authority of Singapore (MAS).

Singapore is notable because its monetary-policy framework places significant emphasis on the exchange rate rather than using a short-term policy interest rate as the main operating tool in the same way as many other central banks.

Exchange-Rate Framework

The Singapore dollar is managed against a trade-weighted basket of currencies within a policy band rather than being fixed to one single foreign currency.

The precise basket composition and policy settings are not simply read from a price chart, so avoid treating SGD as if it had one permanent fixed exchange rate.

Reading an SGD Pair

In USD/SGD, the U.S. dollar is the first currency and the Singapore dollar is the second.

If USD/SGD rises, one U.S. dollar buys more Singapore dollars than before. If it falls, one U.S. dollar buys fewer Singapore dollars.

Key Takeaway

SGD is Singapore's currency, and its value should always be read relative to the other currency in the pair.