This from Wikipedia,
"Initially, the Singapore dollar was pegged to the British pound sterling at a rate of S$60 = ?7. This peg lasted until the demise of the Sterling Area in the early 1970s, after which the Singapore dollar was linked to the US dollar for a short period of time. As Singapore's economy grew and its trade links diversified to many other countries and regions, Singapore moved towards pegging its currency against a fixed and undisclosed trade-weighted basket of currencies from 1973 to 1985. From 1985 onwards, Singapore adopted a more market-oriented exchange regime ? classified as a Monitoring Band ? in which the Singapore dollar is allowed to float (within an undisclosed bandwidth of a central parity) but closely monitored by the Monetary Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. This in theory allows the Singaporean government to have more control over imported inflation and to ensure that Singapore's exports remain competitive. All issued Singapore dollar currency in circulation is fully backed by international assets to maintain public confidence.[3]
The Board of Commissioners of Currency, Singapore, was dissolved on October 1, 2002 and its functions, property and liabilities have been transferred to the MAS.[4]"
-- So it seems The SGD is pegged to a basket of currencies, and this explains the rather large swings in the Usd/Sgd chart. Dont think I would want the MAS's job of working that out.
Cheers P51
BTW some fantastic posts here lately. Thanks to everyone.
AUD
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