Code SGD Exponent 2 Symbol S$ or $ | Number 702 1/100 cent Nickname Sing | |
The Singaporean dollar (Malay: Ringgit Singapura, sign: $; code: SGD) is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.
Contents
The Monetary Authority of Singapore and the Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam) still maintain the historic exchangeability of their two currencies, the Singapore dollar and the Brunei dollar, respectively. The Singaporean dollar is accepted as "customary tender" in Brunei according to the Currency Interchangeability Agreement. Likewise, the Bruneian dollar is customarily accepted in Singapore.
History
Between 1845 and 1939, Singapore used the Straits dollar. This was replaced by the Malayan dollar, and, from 1953, the Malaya and British Borneo dollar, which were issued by the Board of Commissioners of Currency, Malaya and British Borneo.
Singapore continued to use the common currency upon joining Malaysia in 1963, but only two years after Singapore's expulsion and independence from Malaysia in 1965, the monetary union between Malaysia, Singapore and Brunei broke down. Singapore established the Board of Commissioners of Currency, Singapore, on 7 April 1967 and issued its first coins and notes. Nevertheless, the Singapore dollar was exchangeable at par with the Malaysian ringgit until 1973, and interchangeability with the Brunei dollar is still maintained.
Initially, the Singaporean dollar was pegged to the British pound sterling at a rate of S$60 = £7. This peg lasted until the demise of the Sterling Area due to the Nixon Shock in the early 1970s, after which the Singaporean dollar was linked to the US dollar for a short time. As Singapore's economy grew and its trade links diversified to many other countries and regions, Singapore moved towards pegging its currency against a fixed and undisclosed trade-weighted basket of currencies from 1973 to 1985.
From 1985 onwards, Singapore adopted a more market-oriented exchange regime, classified as a Monitoring Band, in which the Singapore dollar is allowed to float (within an undisclosed bandwidth of a central parity) but closely monitored by the Monetary Authority of Singapore (MAS) against a concealed basket of currencies of Singapore's major trading partners and competitors. This, in theory, allows the Singaporean government to have more control over imported inflation and to ensure that Singapore's exports remain competitive.
Before 1970, the various monetary functions associated with a central bank were performed by several government departments and agencies. As Singapore progressed, the demands of an increasingly complex banking and monetary environment necessitated streamlining the functions to facilitate the development of a more dynamic and coherent policy on monetary matters. Therefore, the Parliament of Singapore passed the Monetary Authority of Singapore Act in 1970, leading to the formation of MAS on 1 January 1971. The MAS Act gave the MAS the authority to regulate all elements of monetary, banking, and financial aspects of Singapore.
On 31 March 2003, the Board of Commissioners of Currency Singapore (BCCS) merged with the Monetary Authority of Singapore (MAS), which took over the responsibility of banknote issuance.
Currency in circulation
As of 2012, the total currency in circulation was S$29.1 billion. All issued Singapore currency in circulation (notes and coins) are fully backed by external assets in its Currency Fund to maintain public confidence. Such external assets consists of all or any of the following: (a) gold and silver in any form; (b) foreign exchange in the form of demand or time deposits; bank balances and money at call; Treasury Bills; notes or coins; (c) securities of or guaranteed by foreign governments or international financial institutions; (d) equities; (e) corporate bonds; (f) currency and financial futures; (g) any other asset which the Authority, with the approval of the President of Singapore, considers suitable for inclusion.
Singapore's foreign reserves officially stood at over US$277.9 billion, as of June 2014 according to the MAS.
Coins
In 1967, the first series of coins was introduced in denominations 1, 5, 10, 20 and 50 cents and 1 dollar. These coins depicted wildlife and other images relating to the island nation and were designed by Stuart Devlin, the same artist credited for the 1966 designs on Australia's decimal coin series. The sizes were the same as those used for the Malaysian Ringgit and based directly off the old coinage of the former Malaya and British Borneo dollar. The 1 cent was bronze while the other denominations were copper-nickel. Later, in 1976 the 1 cent was changed to copper-clad steel. The production of the first series was phased out by 1985.
In 1985, the second series of coins were introduced in denominations 1, 5, 10, 20 and 50 cents and 1 dollar. The reverse of these coins were designed by Christopher Ironside. The new series offered smaller coins depicting a floral theme. One dollar banknotes were discontinued and gradually replaced with an aluminum-bronze coin. The 5 cent coin was also changed to aluminum-bronze while the 10, 20, and 50 cents remained copper-nickel. Limited numbers of commemorative bimetallic 5 dollar coins with scalloped edges were also periodically issued later during this series. The series will be phased out by 2017.
On 21 February 2013, the Monetary Authority of Singapore announced a new series of coins in denominations 5, 10, 20, 50 cents and 1 dollar, which went into circulation on 26 June 2013, featuring Singapore's national icons and landmarks. The coins are struck on a multi-ply plated steel planchet used by the Royal Canadian Mint and comes with enhanced features to differentiate from fakes. The coins also feature new designs, the one dollar, now a Bi-Metallic coin will feature the Merlion, the fifty cent coin featuring the Port of Singapore, the twenty cent coin depicts the Changi International Airport, the ten-cent coin featuring public housing and the five-cent coin featuring the Esplanade.
Note: