Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

SINGAPORE

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: November 9, 1968.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Measures have been taken, in accordance with the relevant UN Security Council resolutions, to freeze the accounts and assets of, and block transactions with, listed individuals and organizations associated with terrorism.
Other security restrictionsSingapore observes the import and export prohibitions covered by UN Security Council resolutions.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Singapore is the Singapore dollar.
Other legal tenderSingapore and Brunei currency notes and coins are freely interchangeable at par without charge in Singapore and Brunei Darussalam.
Exchange rate structureUnitary.
Classification
Managed floating with no predetermined path for the exchange rateThe authorities manage the exchange rate as an intermediate target, allowing the Singapore dollar to fluctuate within a targeted policy band. The exchange rate policy is announced every six months in the Monetary Policy Statement, typically in terms of changes to the slope of the policy band. The U.S. dollar is the intervention currency.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketBanks may hedge their exchange risk through forward foreign exchange transactions.
Official cover of forward operationsn.a.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangements
Regional arrangementsSingapore is a member of ASEAN.
Barter agreements and open accountsn.a.
Administration of controlSingapore has no exchange controls, although the Monetary Authority of Singapore (MAS) retains responsibility for exchange control matters.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
References to legal instruments and hyperlinksn.a.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetn.a.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measures
Positive listYes.
Negative listSingapore prohibits the import of some products, mainly for health, safety, and environmental reasons or under UN or other international agreements.
Open general licensesn.a.
Licenses with quotasn.a.
Other nontariff measuresImport restrictions and licensing are imposed to fulfill obligations under international agreements, and/or for health, safety, environmental, and national security reasons.
Import taxes and/or tariffsCustoms duties are levied on imports of beer, stout, samsoo, and medical samsoo.
State import monopolyNo.
References to legal instruments and hyperlinkswww.tradenet.gov.sg/trdnet/index.jsp?catName=7&artName=10&url=/html/31_List_of_Controlled_Goods_–_Imports.html.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasExport licenses are required for certain items, such as substances that deplete the ozone layer and rubber.
Export taxes
Other export taxesn.a.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsNo.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsYes.
Bonds or other debt securities
Sale or issue locally by nonresidentsThere are no restrictions on sale and issue locally by nonresidents. However, nonresident financial entities must convert Singapore dollar proceeds obtained from Singapore dollar loans (exceeding S$5 million), equity listings, or bond issuance into foreign currency before using them to finance activities outside Singapore.
Controls on derivatives and other instrumentsNo.
Controls on credit operations
Financial credits
By residents to nonresidentsYes.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase locally by nonresidentsForeigners may freely purchase residential units in nonlanded, noncondominium developments that have fewer than six levels, excluding public housing.
Sale locally by nonresidentsn.a.
Controls on personal capital transactionsNo.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Singapore dollar facilities include loans, contingent credit lines, and foreign exchange swaps involving a spot sale of Singapore dollars to a nonresident financial institution in a first leg.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsForeign currency deposits of ACU member banks accepted by domestic banks are not subject to reserve requirements.
Liquid asset requirementsForeign currency deposits of ACU member banks accepted by domestic banks are not subject to liquid asset requirements.
Open foreign exchange position limitsNo limits are set by the MAS, but it reviews the internal control systems of banks to ensure that adequate limits and controls are established for treasury activities.
Provisions specific to institutional investors
Insurance companies
Currency-matching regulations on assets/liabilities compositionRisk requirements apply. These requirements allow insurers to invest assets based on the currency of their liabilities by establishing the total risk requirement for each insurance fund and holding sufficient financial resources to maintain an adequate level of solvency. The total risk requirement includes a foreign currency mismatch risk requirement of 8% on the foreign currency risk exposure. The risk requirement applies only when foreign assets are at least 10% of the total value of insurance fund assets. Foreign currency assets that match foreign currency liabilities are excluded from the calculation of the foreign currency risk requirement. Insurers are also required to hold a concentration risk requirement if the foreign currency risk exposure exceeds 50% of total assets.
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.

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