The Currency In Singapore: A Guide

The Singapore dollar (ISO code: SGD) is one of the popular currencies in the global forex market. The SGD is the official currency of the Republic of Singapore, a Southeast Asian country. The currency is minted and regulated by the Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator. This article provides a guide to understanding the SGD and how it is traded on the foreign exchange market.

History of the Singapore Dollar

The history of the SGD is interwoven with the history of Singapore as a country. Located in Southeast Asia, Singapore is an island nation. The modern history of Singapore started in the 19th century when international trading became popular on the island. Later, between 1942 and 1945, the Japanese conquered Singapore and made it a part of their empire. After the war, Britain regained the island and gradually granted autonomy to the government. Later in 1963, Singapore merged with the Federation of Malaya to form Malaysia. Two years later, in 1965, Singapore pulled out of the merger to become a republic. During those periods, Singapore would use currencies with a low value compared with others. But after Singapore left the merger, the SGD was created as the official currency.

What followed is best described as one of the worst economic situations the island country ever faced. Severe housing and unemployment issues triggered harsh economic conditions. The government responded by developing and implementing robust policies between 1960 and 1970. The policies focused on four key areas; manufacturing, infrastructure, public housing, and public education. By 1990, Singapore was reaping the rewards of the policy; the economy experienced a rebirth and began to grow. Today, Singapore is one of the best-performing economies in Asia, and the SGD is among the best-performing currencies in the world.

Singapore Dollar Information

The SGD (nickname Sing) is represented as S$ to differentiate other dollar-tied currencies. It is denominated in bills of S$2, S$5, S$10, S$20, S$25, S$50, S$100, S$1,000, S$10,000 and coins of 1, 5, 10, 20, 50 cents, and of S$1, S$5. The SGD is used in Singapore and Brunei. The SGD was formerly pegged with the Malaysian ringgit, but in 1973, it was pegged to some undisclosed currencies linked to Singapore trading and commerce. The SGD accounts for about 1.9% of the daily foreign exchange volume and comes third in Asia’s top traded currencies. The currency is backed by gold and other assets owned by the Singapore government.

Singapore’s Economy

A strong economy backs the SGD. Since the 19th century, Singapore has been a significant shipping and trading route and destination. The policies designed in the 90s played an important role in making Singapore a leading economy today. The country has developed from a shipping route to becoming a leader in the Asian and global services industry. Despite its relatively small population, the political stability and backing ensure that Singapore retains a strong position in the global economy. The country is a producer-based economy with a trade-by-barter system for its imports. Its proximity to China, Taiwan, and South Korea also contributes to the strong economic ties in South Asia. Singapore has a GDP of S$ 3.69 billion and an economy that grew by 4.6% in two months (May-June) this year.

Best Place to Exchange The Singapore Dollar

The foreign exchange market is active in Singapore. Individuals and corporate organizations exchange the SGD with other currencies for various purposes. If you are in Singapore or traveling there, you can exchange other currencies for the SGD at a local Singapore bank, airport, or licensed exchangers. The government regulates foreign exchange and has a strict policy concerning financial matters. It is probably best to exchange currencies at any local bank where you can get better rates than at airports. You can also exchange the SGD on the global forex market, trading it to make profits.

How to Trade Singapore Dollars Online

You can trade the SGD online from anywhere (where forex trading is allowed). The SGD is one of the dozens of currencies available for online forex trading. The foreign exchange market is a vast, global, inclusive market for exchanging, buying, and selling currencies for profit. The government regulates forex trading in Singapore, and only licensed brokers can offer the service to the public. Here’s how you can trade the SGD and other currencies in the FX market:

• Learn forex trading: although forex trading is the buying and selling of currencies, you need special knowledge about the market, determining price movements, and other necessary things to help you make profits as you trade. You can learn forex trading online or at physical forex academies in Singapore or anywhere else.
• Signup with a broker: brokers offer a platform for anyone seeking to trade the forex market. Find a licensed broker that offers SGD and other top currencies. Ensure that your broker provides the best trading conditions to ease your trading.
• Fund your broker account and trade the forex market. You can sell or buy SGD depending on what pair you trade with.

As of writing, S$1 is equivalent to USD 0.73. SGD is mostly traded with the US dollar forming the pair (USD/SGD). This is the most popular trading pair for the Singapore dollar, and you can find it on your broker.

Final Words

The Singaporean dollar is among the strongest and most stable currencies. It is backed up by gold and other assets owned by Singapore. The economic and political stability provides robust support for the SGD to perform well in the market. Anyone can exchange or trade the SGD through licensed exchanges or the global forex market.