As a result of increasing exports, Singapore's economy is booming, achieving a 13.1 percent economic growth from the first quarter of 2009 to the first quarter of 2010. As we are all aware, this excellent economic growth has taken place while the world currently recovers from the Great Recession. Such extremely high growth has its negative consequences on domestic inflation and the exchange rate, and entails restrictive monetary and exchange rate policies to head off those consequences.The United States Congress attributes Singapore's export boom, at least partly, to currency manipulation. Congress requires the White House to report by April 15 any country that it deems to be a currency manipulator in order to impose surcharges on its exports. Singapore announced its currency revaluation April 15. Congress considers the Singapore dollar to be undervalued and believes the Asian country has manipulated its currency to purposely keep it undervalued, thus stealing growth from other countries, particularly the United States. Full Story
