SINGAPORE--Singapore can't use the exchange rate to manage the competitiveness of its exports, the trade minister said Monday, even as the central bank uses the stronger local dollar to mitigate the impact of inflation.
"The Monetary Authority of Singapore recognizes the need to strike the right balance between ensuring exporters are not unduly hurt by a stronger currency in the short-term, and capping underlying price and cost pressures in the economy," Minister for Trade and Industry Lim Hng Kiang told Parliament in response to a lawmaker's question.
"However, the exchange rate cannot be used as a tool to manage Singapore's export competitiveness," Mr. Lim said. " Over the longer term, competitiveness can only be achieved through higher productivity and through innovation such as creating new products that the market demands." Full story
