Evolution of the Singapore Currency: A Fascinating Tale of the Blooming Economy

Singapore has always attracted travellers from across the globe due to the rapid transition in its economy and technology. Have you ever wondered about the reason for such a rapid transition? Don’t worry; in this blog, we will tell you about the Singapore Currency and how it bloomed to compete with the strong currencies.

The Singapore Currency has a fascinating history that reflects the transformation of Singapore into one of the world’s financial hubs. The evolution of its currency is a story of how Singapore has transformed itself in such a short span of time that it is really difficult to describe in words. In this blog, we’ll explore the journey of the Singapore Dollar, highlighting key milestones and the factors that have shaped its development. Lastly, how Singapore Dollar stands out in comparison to other currencies, especially to its Indian counterpart.

Singapore Currency- The birth of Singapore Dollar

Before the Singapore Dollar (SGD) came into existence, Singapore used various currencies, including the Straits Dollar and the Malayan Dollar. The Straits Dollar were used from 1903 to 1939. After World War II, the Malayan Dollar became the common currency.

However, in 1965, Singapore became an independent nation that necessitated a separate currency, and in 1967, the Singapore Dollar was born, replacing the Malayan Dollar. The Monetary Authority of Singapore (MAS) was established to oversee the new currency and ensure its stability. Interesting Huh!!

Confidence of the British Pound on SGD

In the initial years, the exchange rate of the SGD was fixed to the British Pound and later to a basket of currencies. The whole process is termed as pegging. This pegging stabilized the SGD’s confidence among investors and the public.

SGD’s Shift Towards Flexibility

During the challenging time of the 1970s, Singapore shifted its exchange rate policy from a fixed exchange rate to a managed float in 1973. The transformation allowed the SGD to better reflect market scenarios and respond to international economic shocks.

Economic Boom and Regional Challenges of Later part of 1980s and 1990s

The 1980s and 1990s marked rapid economic growth in Singapore. The country became a global manufacturing and financial hub, attracting foreign investments and boosting exports. The strong economic performance strengthened the SGD, making it one of the most stable currencies in the region.

The economic management and a robust regulatory framework managed the SGD for falling especially during the Asian Financial Crisis. In our opinion, the developing countries should try to learn from such policies before it becomes too late.

Innovation of 21st Century

The early 2000s saw Singapore reinforcing its position as a financial center. The country continuously innovated, introduced measures to enhance the financial system’s resilience and promote sustainable growth.

Despite the global economic slowdown, Singapore’s policies on free trade agreement (FTA), foreign direct investment (FDI) and other trade friendly policies acted as a shock absorber during the tough circumstances and provided stability to SGD.

Lastly, a Strong and Stable Currency

Today, the Singapore Dollar (SGD) is one of the most stable and widely traded currencies in the world. The SGD’s strength is a testament to Singapore’s robust economic policies, political stability, and strategic foresight.

Let’s now compare with other currencies

Comparing the Singapore Dollar with INR, Euro and USD

When travelling to Singapore, it’s essential to understand the exchange rates and currency values, which are crucial for finalizing the budget. Here’s a comparison of the SGD with the Indian Rupee (INR), Euro and the US Dollar (USD) as of 11/06/2024:

(Note: Exchange rates fluctuate, so it’s advisable to check the latest rates before any currency exchange.)

You can carry SGD if you wish (in case you are able to convert your local currency into SGD) while travelling to this country apart from the widely accepted USD and Euro.

Wait! We are not going anywhere without this last question……    

What kind of help are we going to provide?

Let us inform you that we prepare itineraries not only for anywhere in India but also for Asia. We have been travelling since we were toddlers. So here in our blogs and stories, we will give you a glimpse of our journey and help you plan your trip.

Read about our Uzbekistan blogs.

Read about our Kazakhstan blogs.

Read about our Singapore blogs.

Read about our Vietnam blogs.

Read about our Cambodia blogs.

Read about our Bali blogs.

Read about our Kuala Lumpur blog series.

Read about our Sri Lanka blogs.

Read about our Nepal blogs.

Read about our Char Dham blogs.

Read about our Ladakh blogs.

Read about our day trip to Hyderabad.

Read about our Madhya Pradesh blogs.

Read about our Andaman and Nicobar blogs.

Do follow our Instagram handle @mindfulllofvacations and watch for the next destination story of a new place. For any query related to any trip, drop a mail at @mitkau007@gmail.com.

by mitkau

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