1. Why Has the Singapore Dollar Appreciated Over the Long Term?
The SGD has shown consistent appreciation against the USD over the past few decades. From over 2 SGD per USD in the early 20th century, it has strengthened to around 1.28 today. Strong economic fundamentals, prudent monetary policy, and a robust financial ecosystem underpin this trend.
Mansoor Mohd, Chief Economist at Bank of Singapore, noted:
“It is conceivable that we could see 1 USD to 1 SGD in our lifetime.”
This is not speculation—it reflects confidence in Singapore’s financial strength.
2. A Neutral and Stable Currency in a Polarised World
Geopolitical risks and frequent US sanctions have led countries to reassess the risks of over-relying on the USD. Singapore’s neutral geopolitical stance and stable policies make the SGD a strategic alternative for reserve diversification, particularly for Asian and resource-rich emerging market economies.
3. Ten Reasons Behind SGD’s Strength
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Large foreign exchange reserves
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Consistent capital inflows
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Fiscal surpluses over decades
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Low public debt and sound credit system
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AAA sovereign credit rating
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Transparent financial markets
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Credible monetary policy
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Stable real exchange rate
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Strong foreign direct investment (FDI) inflows
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Singapore’s role as a regional financial hub
Together, these fundamentals make the SGD a standout currency in an uncertain global landscape.
4. ASEAN Integration Boosting SGD’s Role
As ASEAN nations deepen financial cooperation, the SGD is playing an increasingly important role in regional trade and capital flows. Singapore’s mature and open financial system makes it a viable currency for settlement and reserves.
5. IMF & BIS Data: Still Emerging, But Rising
While the SGD still accounts for a small share of global reserves, IMF and BIS data show that “non-traditional” currencies (SGD, AUD, CAD, KRW, etc.) now make up 4.51% of total global reserves. Experts believe SGD is steadily increasing its share within this group.
6. Real Usage Drives Currency Influence
As Singapore’s services trade and inbound investment grow, the use of SGD in international transactions is also rising. Though the government does not explicitly promote SGD internationalisation, organic market demand is doing the job.
7. Prudence Still Matters
Economists caution that Singapore’s monetary success was hard-earned and must be maintained through continued fiscal discipline, robust regulation, and long-term reserve strategies. The SGD remains a “non-internationalised but trusted” reserve option.
8. Looking Ahead: Could 1 USD = 1 SGD Happen?
If global reliance on the USD continues to decline and Singapore maintains its strong fundamentals, SGD parity with the USD may become a reality sooner than many think.
“As long as Singapore keeps innovating and staying fiscally sound, the global appeal of the Singapore dollar will only grow.” — Economist comment
