Singapore’s MAS Brings Forward FX Intervention Data Release

The Monetary Authority of Singapore (MAS), Singapore's central bank and financial regulatory authority, announced this Monday that it has brought forward the date of disclosure of its foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) intervention operations to provide more timely information to the financial markets amid the current Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term global pandemic.

According to the statement from the regulator, as of April 2020, the MAS will commence the disclosure of its FX intervention operations. Originally, this had been set to begin in July of 2020.

The data on the regulator’s net purchase of FX from its intervention operations for the period spanning from the 1st of July 2019 to the 31st of December 2019 will be published on the authority’s website this week on the 9th of April 2020 under the statistics section.

The disclosure aims to provide insight into the regulator’s actions and why it has undertaken to implement its monetary policy stance. This is because FX intervention is vital to the Singapore watchdog’s management of its local monetary policy.

As the central bank of Singapore, the financial agency uses the FX market to keep the value of the country’s local currency, the Singapore dollar (SGD), inline within certain parameters as part of its monetary policy. As part of this, the MAS will buy or sell the currency to influence the price.

“The date of disclosure has been brought forward to provide more timely information to the market, and align with MAS’ monetary policy cycle,” the Singapore regulator said in its statement today.

MAS to provide data on a 6-month basis

“Henceforth, MAS will release the data on a six-monthly basis, on the first business day of every April and October. The data will comprise MAS’ net purchases of FX from its intervention operations on a six-month aggregated basis, and with a three-month lag from the end of the period,” the MAS said in its statement.