View Single Post
Old 12-02-2020, 11:19 AM   #765
High Supremacy Member
coolhead's Avatar
Join Date: Mar 2007
Posts: 29,062
There is speculation that Singapore budget will be expansionary to counter the effects of the virus. So this could be the reason why STI is bouyant.

MAS has already taken on an expansionary approach by bringing the policy band for currency upwards. This means that the devaluation of sgp will be in line with other major basket of currencies.

Devaluation of currency is achieved by selling sgp into the market or buying foreign currenies.

As to the Singapore budget, it is targeted towards government spending in typical areas like healthcare. you maybe talking about helicopter money via gst handout or handouts to alleviate impact to household. singapore always does it during budget surplus so it may not be right to call it helicopter money since it is used in times of distress.

correct me if I'm wrong.

Posted from PCWX using Redmi K20 Pro
coolhead is offline