Ready to curb excessive currency volatility: Singapore Central Bank

Singapore's central bank said on Friday it was ready to curb excessive volatility in the Singapore dollar and will provide additional liquidity to the banking system if needed after Britain voted to leave the EU.

The Monetary Authority of Singapore (MAS) said the currency remained within its policy band and interbank markets continued to function in an orderly manner, while the banking system remained "sound."

"The liquidity positions of the major banks in Singapore are healthy, and overall banking system liquidity remains adequate. MAS will provide additional liquidity to the banking system if needed," it said in a statement.

"The trade-weighted Singapore dollar remains within its policy band, notwithstanding heightened volatility in international foreign exchange markets today. MAS stands ready to curb excessive volatility in the Singapore Dollar."

 

The MAS manages monetary policy by letting the Singapore dollar rise or fall against the currencies of its main trading partners within an undisclosed trading band based on its nominal effective exchange rate (NEER).