ST Explains

MAS uses Singdollar policy to combat inflation: How it works

A stronger currency helps increase the purchasing power of Singapore businesses and households. PHOTO: ST FILE
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SINGAPORE - Singapore's central bank on Thursday (April 14) provided more room for the local currency to appreciate, in a move aimed at capping the surge in inflation.

Using the exchange rate is a unique way to stabilise the rate at which consumer prices are rising. Most central banks worldwide set interest rates to achieve the same objective.

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