The currency used is the Singapore dollar, and it’s abbreviated as $. The exchange rate is not constant. Instead, it keeps on fluctuating. This also depends on factors such as the economic stability of a country, inflation and many other factors. However, there are many factors which contribute to the fluctuation of the exchange rate.
This is the how the prices of goods or services rise or also the purchasing power. In short, it is the rate of which a change in prices occurs. When there is a high rate of inflation in Singapore, that means that the value of the Singapore dollar is going to depreciate meaning that it has low value compared to foreign currencies. Therefore, the local currency has a very low purchasing power. The inflation rate is a significant determinant of the exchange rate of Singapore and therefore if the rate of inflation is low then the exchange rate of will be high and vice versa.
The Monetary Authority of Singapore has the mandate of regulating the base interest rate for borrowing hence, reducing borrowing by deficit units because of high costs associated with repaying back the loan. However, increased interest rates mean that the yields of securities increase thus increasing the level of profits of investors which in turn appreciates Singapore’s currency.
A surplus budget means that the government will have more revenue than the expenditures and therefore, there will be more money directed to other income generated activities. This encourages investors from around the world to come into the country and invest which increases purchasing power meaning the currency will be strengthened.
Public debt shows that a country meets most of its financial burdens by borrowing. This however, is a sign that the country is not doing well economically. This discourages a lot of local and international investors because they cannot perceive making money where the economy is ailing. The level of foreign investments decreases as well as purchasing power. This has a detrimental effect on the country’s currency making it deteriorate.
A stable economy indicates the growth of a country which in turn leads to an economy boom. Economic growth attracts investors because of the confidence they have developed on the government of the day. That makes the currency of the country to appreciate. This is because of the high exchange rates between the foreign currencies and the Singapore currency. The government of Singapore should ensure that it has mitigated all the risks associated with low currency rates.
Best Credit SG Pte Ltd is one of the oldest and best money lender in Singapore. We are confident when we say this because we know what we are doing. Formerly known as Cing Dien Credit, we have help numerous people to get through their cash flow problems. As a licensed money lender for more than 30 years, we have been working hard and constantly updating ourselves with the latest trends. If you need cash, you can trust that we know what we are doing.
Furthermore, we are one of the few money lenders open on Sunday in Singapore. We know that it isn’t easy to rush over after work. Thus we have extended our opening hours to include the weekends as well. Whatever cash amount you require, we will be able to help you.
If you have any questions, you can call us at +65 6272 5538. Our loan officers You can also visit us at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. The nearest MRT is Bukit Gombak, we are directly opposite it!