【完了完了】MAS posts $7.4 billion annual loss

[bakuganboy]

Peanut lah, if everytime profit, then u worry

 

[acit]

If 7 billion give its citizen..the money will roll back in with interest..stingy somemore lah..

 

[pmetpmet]

MAS had to use our reserves to defend the Sing Dollar, what loss? Isn't this already expected?

Huat ah! Strong Sing Dollar is good for inflows

 

[tank_t]

How does a central bank post loss?

Maybe is earn lesser

 

[attitudel]

No problem.. continue to pay themselves well.. losses also not their money

 

[DeadPeople]

continue to pay higher monthly operating expenses..

 

[LAMtopia]

It is in the articles. i am only assuming how they had the fx lost that all.
pls read the articles.

Yes I read the article. Just for your education. The key word to look for here is translation. When they referred to the loss from FX, they stated that it was a negative FX translation effect.

This is not a realised loss. It’s a loss from translation. So for example if in Jan you held S$100 of Yen bonds. Then in Dec Yen depreciated 20% against SGD. Your Yen bonds (assuming no other gains or losses) would be worth S$80. However in Yen terms it is still worth the same. That is the FX translation effect. Hope this clarifies.

in terms of investment returns, MAS actually made $4bn during the period. An FX translation loss is less of a concern than an actual investment loss because a big part of MAS’ job is currency control. They do this by buying a basket of currencies against SGD. So inevitably, there would be some FX gains or losses during the period because MAS will always be holding on to a basket of currencies. In order to avoid this loss MAS would need to either sell the currencies or do some hedging. The former is undesirable because MAS would just end up devaluing the SGD which is not what we want. The latter is also not desirable because at the size that MAS is managing it would counteract some of the effects of FX controls. Hope this clarifies.

 

[orhneeorh]

Yes I read the article. Just for your education. The key word to look for here is translation. When they referred to the loss from FX, they stated that it was a negative FX translation effect.

This is not a realised loss. It’s a loss from translation. So for example if in Jan you held S$100 of Yen bonds. Then in Dec Yen depreciated 20% against SGD. Your Yen bonds (assuming no other gains or losses) would be worth S$80. However in Yen terms it is still worth the same. That is the FX translation effect. Hope this clarifies.

in terms of investment returns, MAS actually made $4bn during the period. An FX translation loss is less of a concern than an actual investment loss because a big part of MAS’ job is currency control. They do this by buying a basket of currencies against SGD. So inevitably, there would be some FX gains or losses during the period because MAS will always be holding on to a basket of currencies. In order to avoid this loss MAS would need to either sell the currencies or do some hedging. The former is undesirable because MAS would just end up devaluing the SGD which is not what we want. The latter is also not desirable because at the size that MAS is managing it would counteract some of the effects of FX controls. Hope this clarifies.

yes hold foreign currencies cash bonds for liquidity purposes , but why didn't hedge FX risk with derivatives ??

if talk fx policy, they can just use fx swaps - buy sgd now, sell sgd 6mth later

 

[Terraces]

Time to cut down the cabinet salary including the JLB president?

 

[Strikk]

Wow. So how. Will it affect us commoners?

 

[curiosity_20]

Time to convert all S$ to USD$ now!!

 

[tmkedmw]

https://www.mas.gov.sg/who-we-are/B...egulatory framework and supervisory policies.

 

[jasonho26]

Yes I read the article. Just for your education. The key word to look for here is translation. When they referred to the loss from FX, they stated that it was a negative FX translation effect.

This is not a realised loss. It’s a loss from translation. So for example if in Jan you held S$100 of Yen bonds. Then in Dec Yen depreciated 20% against SGD. Your Yen bonds (assuming no other gains or losses) would be worth S$80. However in Yen terms it is still worth the same. That is the FX translation effect. Hope this clarifies.

in terms of investment returns, MAS actually made $4bn during the period. An FX translation loss is less of a concern than an actual investment loss because a big part of MAS’ job is currency control. They do this by buying a basket of currencies against SGD. So inevitably, there would be some FX gains or losses during the period because MAS will always be holding on to a basket of currencies. In order to avoid this loss MAS would need to either sell the currencies or do some hedging. The former is undesirable because MAS would just end up devaluing the SGD which is not what we want. The latter is also not desirable because at the size that MAS is managing it would counteract some of the effects of FX controls. Hope this clarifies.

i understand what you said. a loss is still lost whether it is realised or not. as no one know when MAS would sell or hold for how long. will MAS never sell? Paper lost is still a loss at least at this moment.

in your third para... it is exactly what i said if you pay attention and not choose and pick just 1 of my post.
as such your clarification is not require.

this is the beginning for MAS to lose big and bigger.
cronies always a cronies.

 

[Anotherlap]

i understand what you said. a loss is still lost whether it is realised or not. as no one know when MAS would sell or hold for how long. will MAS never sell? Paper lost is still a loss at least at this moment.
in your third para... it is exactly what i said if you pay attention and not choose and pick just 1 of my post.
as such your clarification is not require.
this is the beginning for MAS to lose big and bigger.
cronies always a cronies.

Don't think it's possible to have your cake and eat it too. MAS deliberately took the paper loss when they made the SGD higher to combat inflation - which by the way is way higher in other countries.

The stronger SGD allows us to buy our imported goods (food) at a cheaper rate.

But nothing is free, it results in a paper loss for the foreign currency that MAS holds, I.e. the so called negative translation


Read HWZ Forum Rules!

 

[Anotherlap]

Yes I read the article. Just for your education. The key word to look for here is translation. When they referred to the loss from FX, they stated that it was a negative FX translation effect.
This is not a realised loss. It’s a loss from translation. So for example if in Jan you held S$100 of Yen bonds. Then in Dec Yen depreciated 20% against SGD. Your Yen bonds (assuming no other gains or losses) would be worth S$80. However in Yen terms it is still worth the same. That is the FX translation effect. Hope this clarifies.
in terms of investment returns, MAS actually made $4bn during the period. An FX translation loss is less of a concern than an actual investment loss because a big part of MAS’ job is currency control. They do this by buying a basket of currencies against SGD. So inevitably, there would be some FX gains or losses during the period because MAS will always be holding on to a basket of currencies. In order to avoid this loss MAS would need to either sell the currencies or do some hedging. The former is undesirable because MAS would just end up devaluing the SGD which is not what we want. The latter is also not desirable because at the size that MAS is managing it would counteract some of the effects of FX controls. Hope this clarifies.

Thanks for the good clear explanation


Read HWZ Forum Rules!

 

[jasonho26]

Don't think it's possible to have your cake and eat it too. MAS deliberately took the paper loss when they made the SGD higher to combat inflation - which by the way is way higher in other countries.

The stronger SGD allows us to buy our imported goods (food) at a cheaper rate.

But nothing is free, it results in a paper loss for the foreign currency that MAS holds, I.e. the so called negative translation


Read HWZ Forum Rules!

like what you said, appreciating currency has it pro and cons. if you are manufacturing base in SG, it is not a good news.
Small exporting country like Sg, can take the hit for how long?
Anyway SG inflations is definitely way higher than reporting 4%.

also Sg hike interest rate in a way will support SGD and at what expense?
Good luck Sinkies... worse time ahead.

 

[ZhangWei2468]

​

I am very surprised the MAS post $7.4 billion annual loss.

The Monetary Authority of Singapore has sole control over the printing of all banknotes within the country. When printing money, MAS must consider inflation, interest rates, and currency devaluation.

Hasn’t the MAS (Monetary Authority of Singapore) been printing enough banknotes, money ?

How money MAS prints every month, every year? 500 million dollars a month?

The foreigners working in Singapore have earned a lot of money through Singapore Government ( PAP) given jobs, They have earned most of the money being printed in the MAS.

How much money is being kept in GIC? How many billons dollars? 200 billion dollars?

How much money is being kept in the Singapore Cash Reserves? 300 billion dollars?



How is the cash being drawn ( $30 billion dollars for Covid19 relief ) from the Singapore Cash Reserves is to be replenished back into the Reserves?

How much money is being kept in Temasek Holdings? And how it is managed? Monthly? Annually ?


Why doesn’t the MAS print more money every month to make up for the current annual loss?


Thank you very much.

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[plustwo]

a lot of kumgong here.. mas objective is to control inflation through sgd. if they don't lose money on the basket of currencies our inflation will be 10% like brandon land

 

[plustwo]

​

I am very surprised the MAS post $7.4 billion annual loss.

The Monetary Authority of Singapore has sole control over the printing of all banknotes within the country. When printing money, MAS must consider inflation, interest rates, and currency devaluation.

Hasn’t the MAS (Monetary Authority of Singapore) been printing enough banknotes, money ?

How money MAS prints every month, every year? 500 million dollars a month?

The foreigners working in Singapore have earned a lot of money through Singapore Government ( PAP) given jobs, They have earned most of the money being printed in the MAS.

How much money is being kept in GIC? How many billons dollars? 200 billion dollars?

How much money is being kept in the Singapore Cash Reserves? 300 billion dollars?



How is the cash being drawn ( $30 billion dollars for Covid19 relief ) from the Singapore Cash Reserves is to be replenished back into the Reserves?

How much money is being kept in Temasek Holdings? And how it is managed? Monthly? Annually ?


Why doesn’t the MAS print more money every month to make up for the current annual loss?


Thank you very much.

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you want 30% inflation?