Major Currencies Questions Medium
The history of the Singapore dollar dates back to 1965 when Singapore gained independence from Malaysia. Prior to that, Singapore was using the Malaysian dollar as its currency. However, after separation, Singapore decided to establish its own currency to have control over its monetary policy and economic stability.
The Singapore dollar was introduced on April 7, 1967, replacing the Malaysian dollar at a 1:1 exchange rate. The Monetary Authority of Singapore (MAS) was established as the central bank responsible for issuing and managing the currency.
In the early years, the Singapore dollar was pegged to a basket of currencies, including the British pound, the Japanese yen, and the Malaysian ringgit. This helped to stabilize the currency and promote trade and investment.
Over time, Singapore's economy grew rapidly, and the country became a major financial hub in Southeast Asia. As a result, the Singapore dollar gained strength and stability. In 1985, the MAS decided to switch to a managed float exchange rate system, allowing the currency to fluctuate within a specified band against a trade-weighted basket of currencies.
Since then, the Singapore dollar has remained relatively stable and has become one of the most traded currencies in the world. It is widely accepted in international markets and is used for various purposes, including trade, investment, and tourism.
The Singapore dollar is symbolized by the currency code SGD and is divided into 100 cents. The currency is available in both coins and banknotes, with various denominations to cater to different transactional needs.
Overall, the history of the Singapore dollar showcases Singapore's journey from a young nation to a thriving economy with a strong and stable currency.