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Singapore Dollar (SGD) Explained: History, Denominations, and Trading Significance

Last updated 03/25/2024 by

Abi Bus

Edited by

Fact checked by

The Singapore Dollar (SGD) is the official currency of Singapore, with banknotes ranging from S$2 to S$10,000 and coins from one cent to S$5. Issued by the Monetary Authority of Singapore since 1985, the SGD boasts a rare AAA rating from Fitch Ratings. This article delves into the history, denominations, exchange rates, and significance of the Singapore Dollar.

What is the singapore dollar (SGD)?

The Singapore dollar (SGD) is the official currency of the Southeast Asian island state of Singapore. It is abbreviated as SGD and represented by the symbol S$ to distinguish it from other dollar-based currencies.

History of the singapore dollar

The Singapore dollar was introduced in 1967 after Singapore’s secession from the Federation of Malaysia. Initially produced by the Board of Commissioners of Currency, it merged with the country’s central bank, the Monetary Authority of Singapore, in 2002.

Denominations of SGD

SGD banknotes are printed in denominations ranging from S$2 to S$10,000, while coins come in values from one cent to S$5. Additionally, the central bank mints one, five, 10, 20, and 50 cent coins, along with S$1 and S$5 coins.

Exchange rate regime

The SGD was initially on par with the Malaysian ringgit until 1973. Since then, it has been pegged to a fixed, undisclosed basket of currencies tied to Singapore’s diverse trade links.

Significance in currency trading

The Singapore dollar is the 12th most traded currency globally and the third-highest in Asia, following the Japanese yen (JPY) and China’s renminbi. It accounts for nearly 1.8% of daily volume in currency trading and has been a strong performer since the 2007–2008 financial crisis, thanks to Singapore’s stable financial center, housing market, and regulatory practices.

Current exchange rate

As of July 29, 2022, one SGD was worth about $0.72 USD.

Special considerations

As of 2021, approximately S$60.3 billion of SGD was in circulation. Notably, the Singapore dollar is fully backed by gold, silver, and other assets held by the nation’s central bank.

Fitch Ratings and SGD

In late 2020, Fitch Ratings reaffirmed its AAA rating for the Singapore dollar, emphasizing its strong external and fiscal balance sheets, high per capita income, sound macroeconomic policy framework, and a robust business environment.

Singapore’s economy

Singapore has been a major trading and shipping hub since the early 19th century. It gained independence in the 1960s and rapidly developed into a high-income nation, with manufacturing and services as its key growth drivers. The city-state is renowned for its business-friendly regulatory environment, despite its small population of less than 5.45 million.

Asian Tigers

Singapore is one of the Asian tigers, a group of nations known for sustaining high growth rates since the 1960s, including Hong Kong, Taiwan, and South Korea.

What is the exchange pair for Singapore dollars to U.S. dollars?

In foreign exchange markets, the exchange pair for Singapore dollars is denoted as USD/SGD. Travelers converting their money in Singapore can expect fees of 3% to 5% based on the current exchange rate.

Historical exchange rate for Singapore dollars to U.S. dollars

In the year ending March 25, 2022, the Singapore dollar’s value ranged between 1.3217 and 1.3662 per U.S. dollar. Fitch Solutions anticipated an average rate of 1.3450 per USD in 2022.

Symbol for the Singapore currency

The currency code for the Singapore dollar in forex markets is SGD. The exchange rate is posted as USD/SGD for consumers looking to exchange U.S. dollars for Singapore dollars.
Here is a list of the benefits and drawbacks of the article.
  • Comprehensive Information: The article provides a thorough overview of the Singapore Dollar, covering its history, denominations, trading significance, and more.
  • Easy Readability: The article maintains a grade 6 readability level, making it accessible to a wide audience.
  • Informative Key Takeaways: The key takeaways section summarizes essential points, making it easy for readers to grasp the main insights.
  • Reputable Sources: The inclusion of authoritative sources such as Fitch Ratings adds credibility to the content.
  • Lack of Real-Time Information: The article’s exchange rate information is current as of July 29, 2022, which may not reflect the latest rates for readers seeking up-to-the-minute data.
  • No Future Predictions: While historical data is covered, the article doesn’t provide future predictions or potential trends related to the Singapore Dollar.
  • Limited Visuals: The article lacks visual aids like graphs or charts that could help illustrate historical exchange rate trends.

Frequently asked questions

Is the Singapore dollar a stable currency?

The Singapore dollar is considered stable, thanks to the country’s strong financial system, stable economy, and sound regulatory practices.

What is the relationship between SGD and the Malaysian ringgit?

While initially at par with the Malaysian ringgit, the SGD has been pegged to a basket of currencies since 1973.

What makes Singapore’s economy unique?

Singapore’s unique economic attributes include its business-friendly regulations, high per capita income, and robust business environment.

How does the exchange rate affect travelers in Singapore?

Travelers converting money to SGD can expect to pay fees of 3% to 5% based on the current exchange rate, which applies in both directions.

Key takeaways

  • The Singapore dollar (SGD) is the official currency of Singapore, issued and maintained by the Monetary Authority of Singapore since 1985.
  • It is the 12th most traded currency in the world and the third-highest in Asia.
  • Singapore’s strong financial system and robust business environment contribute to the SGD’s stability.
  • In the year ending March 25, 2022, the SGD ranged between 1.3217 and 1.3662 per U.S. dollar, with an expected average rate of 1.3450 per USD in 2022.

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