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Thread: MAS sudden policy change

  1. #1
    Senior Member UncleFai's Avatar
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    Default MAS sudden policy change

    Sing$ to be allowed to weaken - especially against US$

    http://www.straitstimes.com/news/bus...shift-20150128

    Shopping on Amazon.com etc just got more expensive... but then everyone playing the QE game. If we don't flex, we will lose out.

  2. #2
    Senior Member Nikonzen's Avatar
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    Default Re: MAS sudden policy change

    They say the dollar is getting stronger than ever. I can assure you a dollar does not buy what it bought last year. The only thing being discounted is gasoline but even then they nail you on the back side because you know...hey...the man has his plan right??? It is almost like one day's expenses for a small family has tripled.
    Last edited by Nikonzen; 28th January 2015 at 12:40 PM.
    Expand your mind or get left behind

  3. #3

    Default Re: MAS sudden policy change

    Quote Originally Posted by Nikonzen View Post
    They say the dollar is getting stronger than ever. I can assure you a dollar does not buy what it bought last year. The only thing being discounted is gasoline but even then they nail you on the back side because you know...hey...the man has his plan right??? It is almost like one day's expenses for a small family has tripled.
    for example ?

  4. #4
    Senior Member Nikonzen's Avatar
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    Default Re: MAS sudden policy change

    Not long ago I could go buy a nice cut of steak for around 7-8 bucks...same thing is now 11-12 bucks. 2 liter Coca Cola used to sell all the time at 99 cents...now 1.99. Tires for car. Because some bright soul decided that American tire manufacturers should get a break they slapped an import tariff on tires. So tires are astronomically more expensive than they used to be. Everything is more expensive...just look!
    Last edited by Nikonzen; 28th January 2015 at 02:00 PM.
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  5. #5
    Moderator diver-hloc's Avatar
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    Default Re: MAS sudden policy change

    Quote Originally Posted by Nikonzen View Post
    Not long ago I could go buy a nice cut of steak for around 7-8 bucks...same thing is now 11-12 bucks. 2 liter Coca Cola used to sell all the time at 99 cents...now 1.99. Tires for car. Because some bright soul decided that American tire manufacturers should get a break they slapped an import tariff on tires. So tires are astronomically more expensive than they used to be. Everything is more expensive...just look!

    Welcome to the rest of the World.... the same amount of $$$ will not buy you the same amount of 'stuffs' like it used to.... Same in SG too...

    Scuba & Father... For Life

  6. #6

    Default Re: MAS sudden policy change

    Quote Originally Posted by Nikonzen View Post
    They say the dollar is getting stronger than ever. I can assure you a dollar does not buy what it bought last year. The only thing being discounted is gasoline but even then they nail you on the back side because you know...hey...the man has his plan right??? It is almost like one day's expenses for a small family has tripled.
    it's called inflation

  7. #7

    Default Re: MAS sudden policy change

    US$ has been on the uptrend since last year. And it is going to strengthen even more once interest rate hike begins.

  8. #8

    Default Re: MAS sudden policy change

    This also explains why Saudi has refused to cut oil production. They lose on revenue due to falling oil price but they gain on forex because all their money are denominated in US$. Therefore, they may not bleed as much as others would think of.

  9. #9

    Default Re: MAS sudden policy change

    Quote Originally Posted by Nikonzen View Post
    Not long ago I could go buy a nice cut of steak for around 7-8 bucks...same thing is now 11-12 bucks. 2 liter Coca Cola used to sell all the time at 99 cents...now 1.99. Tires for car. Because some bright soul decided that American tire manufacturers should get a break they slapped an import tariff on tires. So tires are astronomically more expensive than they used to be. Everything is more expensive...just look!
    well.. it seems QE is working then.. isnt it exactly what they want ?

    Quote Originally Posted by Jedi View Post
    This also explains why Saudi has refused to cut oil production. They lose on revenue due to falling oil price but they gain on forex because all their money are denominated in US$. Therefore, they may not bleed as much as others would think of.
    still... 50% drop is quite steep by my standard
    Last edited by hanzohattori; 28th January 2015 at 11:46 PM.

  10. #10

    Default Re: MAS sudden policy change

    Actually the intention was not to let the Sing$ weaken, it was to let it strengthen, but at a slower rate than before the change. Market forces led the Sing$ to depreciate. At least that was what I understood from the article written by TODAY. I don't know about Straits Times, I stopped reading that crap years ago.

    EDIT: Read the Business Times article, I think it more accurately explains the policy.

    The Monetary Authority of Singapore (MAS) on Wednesday made a surprise cut to the slope of its Singapore dollar nominal effective exchange rate (S$NEER) as inflation pressure eases.

    The central bank will continue with the policy of a modest and gradual appreciation of the S$NEER policy band but the slope of the policy band will be cut. There will be no change to its width and the level at which it is centred.
    Last edited by brapodam; 29th January 2015 at 07:46 AM.

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