Singapore's central bank to increase monetary policy transparency

MACROECONOMICS - SINGAPURA. Singapore's central bank said on Wednesday it will disclose more information on the actions it takes to implement monetary policy, including releasing data on foreign exchange intervention every six months.

The Monetary Authority of Singapore (MAS) manages policy through exchange rate settings rather than interest rates, letting the Singapore dollar rise or fall against the currencies of its main trading partners within an undisclosed policy band.

"MAS has ... decided to disclose further information on its monetary policy operations, without compromising their effectiveness," the MAS said in a statement.

"This further disclosure initiative will provide market participants a better indication of the actions that MAS has undertaken to implement its monetary policy stance."

The MAS also said it will be transferring S$45 billion (US$ 1 = 1.3623 Singapore dollars) (US$ 33 billion) out of its $404 billion in foreign exchange reserves to Singapore's sovereign wealth fund GIC for longer-term investments.

"This amount is the excess over what MAS deems necessary to maintain confidence in Singapore’s exchange rate-centred monetary policy," the MAS statement said.

GIC is among the world's 10 biggest sovereign investors with $390 billion worth of assets, according to the Sovereign Wealth Fund Institute.