#Newsflash: Singapore Added to U.S. Monitoring List on Currencies

(Bloomberg) -- Singapore was added to a watch list for currency manipulation by the U.S., which said the city-state made estimated net foreign exchange purchases of at least $17 billion in 2018, equivalent to 4.6 percent of GDP.

Singapore should undertake reforms that will lower its high saving rate and boost low domestic consumption, while striving to ensure that its real exchange rate is in line with economic fundamentals, in order to help narrow its large and persistent external surpluses, the U.S. report says.

Countries with a current-account surplus with the U.S. equivalent to 2% of gross-domestic product are now eligible for the list, down from 3%. Other thresholds include persistent intervention in markets for a nation’s currency, and a trade surplus of at least $20 billion. Countries that meet two of the three criteria are placed on the watch list. China only meets one of the criteria, but Treasury says it’s on the list because of its large trade surplus with the U.S.

To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editors responsible for this story: Niluksi Koswanage at nkoswanage@bloomberg.net, Melissa Cheok


Source from MSN News