The media reported today that the Monetary Authority of Singapore lost S$10.9 billion for the last fiscal year due to the strength of the SGD. This is somewhat disheartening given the fact that the loss could easily have been avoided by holding our reserves in gold rather than foreign currencies and their related debt instruments. With gold, the central bank could easily have produced record profits instead of the record loss.
That said, I must say that I am not surprised at this outcome. I don't expect anyone in the central bank, given that most are trained in elite Western universities, to have a firm understanding of the Austrian School of economics necessary for prudent monetary policy management that will help Singapore navigate through the financial storms that are coming our way.
Hi SGPrep, Great fan of your writing and thought.
ReplyDeleteCan you talk something about the local property and how KBW is faring as NMD minister and how he is dumping so many HDB BTO out, potentially flooding the market.
Thank you.