Singapore Dollar (SGD) Definition
What is the Singapore Dollar (SGD)?
The term Singapore Dollar (SGD) refers to the official currency of the Southeast Asian island state of Singapore. Currency is issued and maintained by the country central bank. The dollar is abbreviated as SGD and is represented by the symbol S$ to distinguish it from other dollar-based currencies. Singapore dollar banknotes are printed in denominations between 2 and 10,000 Singapore dollars. A single SGD is divided into 100 cents with coins minted in denominations of one cent to 5 Singapore dollars.
Key points to remember
- The Singapore dollar is the official currency of the island state of Singapore.
- It is abbreviated as SGD and is represented by the symbol S$.
- SGD notes are printed in denominations ranging from S$2 to S$10,000 while coins are minted from 1 cent to S$5.
- The currency has been issued by the country’s central bank, the Monetary Authority of Singapore, since 1985.
- The Singapore dollar has a rare AAA rating from Fitch Ratings.
Understanding the Singapore Dollar (SGD)
The Singapore dollar was introduced in 1967 shortly after the island’s secession from the Federation of Malaysia. The currency was initially produced by the Board of Commissioners of Currency until its merger with the country’s central bank, the Monetary Authority of Singapore, in 2002.
Currency banknotes are printed in the following denominations: S$2, S$5, S$10, S$20, S$25, S$50, S$100, S$1,000 and S$10,000 $. As shown above, a single SGD is divided into 100 cents. The central bank is responsible for minting coins in the following denominations: one, five, 10, 20, and 50 cents. It also produces coins of 1 and 5 Singapore dollars.
The Singapore dollar, commonly referred to as the sing in the foreign exchange market, has been kept at par with the malaysian bell until 1973. Since then, it has been pegged to a fixed but undisclosed basket of currencies associated with the republic’s various trade links.
The Singapore dollar is the 12th most traded currency in the world and the third in Asia, behind the Japanese Yen (JPY() and the Chinese renminbi. The SGD accounts for almost 1.8% of daily currency trading volume. Since the financial crisis of 2007-2008, the SGD has become one of the best performing currencies in the world. With a robust and growing financial center, stable housing prices and undemanding regulatory practices, Singapore has become a preferred destination for offshore investors and entrepreneurs.
One S$ was worth approximately US$0.72 as of July 29, 2022.
Special Considerations
According to the Central Bank of Singapore, around 60.3 billion Singapore dollars were in circulation from 2021. The dollar is fully backed by gold, silver and other assets held by the country’s central bank.
At the end of 2020, Fitch Ratings reaffirmed its AAA rating on the Singapore dollar, despite the significant impact of the COVID-19 pandemic on the nation-state’s economy. Fitch cited its “unusually strong external and fiscal balance sheetshigh per capita income, a sound macroeconomic policy framework and a sound business environment. »
Singapore’s economy
Singapore has been an important trade and shipping hub since the early 19th century, when the British East India Company spotted its potential as a commercial hub for its Asian trade. It remained a British Crown Colony before and after its occupation by Japan during World War II.
After gaining independence in the 1960s, Singapore went through a period of manufacturing growth and rapidly developed into a high-income nation. The manufacturing industry and service sectors remain its main engines of growth. It is also a key financial services center for the region and remains an important port.
According to the World Bank, Singapore has one of the most business-friendly regulatory environments in the world for entrepreneurs. Its status as a world-class business center is more impressive considering its small size. The entire city-state has less than 5.45 million inhabitants.
The island republic is one of four asian tigers whose economies have maintained a high rate of growth since the 1960s, propelling them into the ranks of the world’s wealthiest nations. The other Asian tigers are Hong Kong, Taiwan and South Korea.
What is the trading pair between Singapore dollars and US dollars?
Exchange rate enthusiasts will find this currency pair displayed in USD/SGD.
Travelers to Singapore can expect the rates they receive from a bank or money changer to reflect a charge of 3% to 5% of the prevailing posted exchange rate.
Charges apply both ways. If you leave Singapore and want to convert the remaining Singapore dollars to US dollars, you will lose around 3-5% of your money’s value in fees.
What is the historical exchange rate of Singapore dollars to US dollars?
During the year ending March 25, 2022, the value of the Singapore dollar ranged between 1.3217 and 1.3662 per US dollar. Fitch Solutions expected an average of 1.3450 per USD in 2022, saying the currency appeared to be in a “slightly stronger” position than usual.
What is the currency symbol of Singapore?
The currency code for Singapore currency in the foreign exchange markets is SGD. Its currency code is S$. Consumers wishing to exchange US dollars for Singapore dollars will see the exchange rate displayed as USD/SGD.