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A personnel member Singapore Dolver currency records in Singapore in Singapore on October 6, 2022 in Singapore in Singapore.
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In particular, investors are secure, treasures, as well as Japanese Yen, US dollars and the Swiss franc, to currencies. These assets are expected to maintain or increase their values during the period of market tour.
Although Greenback stays in the world’s reserve currency, it has weakened. The dollar index is more than 9%. The outlook for Japanese yen is clouded with trade concern. Analysts against such a background suggest that the preparation may be an alternative: Singapore dollars.
Christopher Wong, FX strategy in the OCBC expressed the CNBC to SGD in the SGD “Quasi Safe-Hav” currency, especially in the Asian and developing markets.
“Traditional safe halls, such as USD, JPY (Japanese) or CHF (Swiss Franc), are prone to demonstrate defense features as centered in Asia.” Wong said.
SGD is intensifying about 6% annual, jefferies for $ 6% It was reported to have something To predict the currency can reach a parity in the next five years.
“SGD is really one of the safest areas of the world, but the next safe shelter,” Omar Slimin, the Asian co-chair will not be able to obtain a stable income in Pinebridge investments.
“The institutional framework of the Singapore does not make solid and strong economic bases of Singapore, as well as strong policies, especially when it comes to financial carelessness,” he said.
The VP Bank has many features of a modern safe shelter, including Macroeconomic stability, strong institutions, great current reporting surplus and low political risk of SGD.
Brill said that the framework of Singapore’s monetary policy has conveyed the “exceptional stability”, the currency of the reliable shelter flow.
Unlike most nations, it does not use interest rates to manage Singapore, but the Singapore dollar strengthens or weakens Singapore dollars against a basket of the policy group. The exact exchange rate is not prescribed, but the exact level of SGD can move within the unexplained set policy group.
Sumitomo Mitsui Banking Corporation Head of the Asian Macro Strategy estimates that the political group is 4% width, and this management means that this management is limited to short-term risks and more accurate restrictions.
The hassles
Although SGD is on the right path, the experts said the next wide-haul is a road killing on the next way to a wide global secure currency.
The first is the size of the SGD market. Information Bank of international settlements in 2022 USD was 88% of the forex market, Yen and Swiss franc was 17% and 5%. Singapore dollars were only 2%. BIS survey is held every three years, the next one will be in September 2025.
“Although Singapore is highly distinguished, there is a small economy and SGD has no depth of the new or franc trading volume or bond market,” he said.
In addition, the monetary policy, which has brought exceptional stability to SGD, is a lot to restrict it.
Brill, currency “managed,” it limits the speculation and large-scale placement of markets and covers the liquidity and depth. These are the key signs that investors are looking for a true global safe shelter.
“So, yes, the frame helps reliability – but the scale is blocked,” he said.
Other factors include Singapore’s export-reliable economy. Figures from the World Bank show that exports 178.8% of the GDP of the city-state In 2024.
Thus, the money organization of Singapore cannot appreciate the appetite for SGD.
“Investors would push SGD, push SGD,” Nguyen pointed out, adding SGD, “he would not tolerate SGD only as Singapore could damage the competitiveness.”
SGD can be used to reduce currency risk. Global General Investment Specialist in Singapore, SGD’s “SGD could play a very important role in diversification … So, it can be the third currency in many currency diversification discussions.”
Experts agreed that Singapore’s currency was the potential to gradually obtain the equivalent status of the Swiss franc in the absence of again or not green.
The VP Bank’s Brill has been built in a reliable shelter for decades in decades, and if the SGD is well performed during the Asian crisis, is not the first call port during global slowdown.
“More international use in time, more accessible local markets and consistent stability can change gradually,” Brill said.
Pinebridge’s Slim is also optimistic about the future of SGD in the future of the SGD’s future traditional SGD: “The world has become an increasingly safe area and the SGD would be traditionally.
Julius Baer’s scientific analytics Julius Baer, a more optimistic sound, does not rule out the use of the ability to be a safe shelter of Asia to be a global, but can take time.
