Singapore Dollar (SGD)
The Singapore Dollar is managed by the Monetary Authority of Singapore against a basket of currencies. Singapore's role as Asia's financial hub makes the SGD a major regional reserve choice.
Convert SGD
1 SGD in major currencies
| SGD | All currencies |
|---|
A short history of the Singapore Dollar
Singapore introduced the dollar in 1967, two years after independence, replacing the Malaya and British Borneo dollar. The new currency was initially interchangeable with the Malaysian ringgit, but that arrangement ended in 1973. Since then the Singapore dollar has grown with the city-state's transformation from trading port into a major financial, shipping and technology hub.
Unlike most central banks, the Monetary Authority of Singapore (MAS) uses the exchange rate as its main monetary-policy tool. It manages the Singapore dollar against a trade-weighted basket within an undisclosed band, adjusting the band when inflation or growth conditions change. That framework has made the SGD one of Asia's most stable currencies.
What moves the SGD exchange rate
Singapore is a small, exceptionally open economy, so the currency reflects both regional trade and global capital flows.
- MAS policy: the slope, width and center of the trade-weighted band matter more than a conventional overnight-rate target
- Global trade: electronics, pharmaceuticals, shipping and finance make Singapore sensitive to the world business cycle
- China and regional demand: mainland China and ASEAN are crucial trading partners, so Asian growth expectations feed into SGD
- Inflation and imported costs: food, energy and housing costs matter greatly in an economy that imports most of what it consumes
The Singapore Dollar in practice
Singapore is one of the world's easiest places to pay by card or phone. Contactless cards, PayNow and QR payments are common, although small hawker stalls may still prefer cash or a local wallet. The currency is divided into 100 cents, and Malaysian ringgit may be accepted near the border, but the quoted rate is rarely as good as paying in SGD.
For remittances, Singapore is a major regional hub for workers from Malaysia, Indonesia, the Philippines and India. Bank transfers are reliable, but specialist services can offer a materially better total received. Businesses use SGD as a relatively stable invoicing and treasury currency for Southeast Asian operations.
Popular Singapore Dollar conversions
USD/SGD is the primary global reference pair and responds to both US rates and MAS settings. SGD/MYR is the natural cross-border pair for the tightly connected Singaporean and Malaysian economies. SGD/IDR and SGD/INR serve large worker and business corridors, while SGD/CNY tracks one of the region's most important trade relationships.
Frequently asked questions
How does Singapore manage the Singapore Dollar?
MAS manages the SGD against a secret trade-weighted basket inside a policy band. It changes the band’s slope, width or center rather than relying mainly on a short-term interest-rate target.
Is the Singapore Dollar a safe currency?
It is regarded as one of Asia's more stable currencies because Singapore has strong institutions, substantial reserves, low inflation historically and a credible exchange-rate framework. Stability does not mean the rate never moves.
Can I use Malaysian ringgit in Singapore?
Some businesses near the Malaysian border accept ringgit, but acceptance is not universal and the exchange rate may include a large margin. Paying in SGD or using a card is normally better.