Wednesday, February 27, 2013

Singapore Stands as a Beacon of Sound Currency in a World Gone Mad

(By: John Browne)  As China enters the “Year of the Snake,” Singapore stands as a beacon of sound currency in a world gone mad. China's renminbi remains pegged to the US dollar, while even steadfast Switzerland has followed the US, UK, EU, and Japan into an impoverishing strategy of currency debasement. Singapore, alone, has been able to sustain genuine economic growth in the context of a strong national currency.
The result? Singapore’s economy is outperforming. GDP grew by 1.3 percent in 2012, while the Singapore dollar was up 6.5% against the US dollar for the year. Unemployment has actually remained down since the start of the financial crisis, pushing below 2 percent in 2012. This figure would be a pipe dream in the West.

What's more, Singapore remains a creditor nation, with a current account balance that has remained on an uptrend for over two decades.

Clearly, currency devaluation is not a winning strategy, especially for a country with a strong balance shee

Editor : Thank you Mr John Browne for your compliment for my country.  I truly hope my leaders will stay on the course and not be forced to join the 'race to the bottom' and be a true beacon of sound currency to the whole world.

No comments:

Post a Comment