Singapore dragon in the Lion City

Immediately after the first reported cases of atypical pneumonia began a gradual slide in Singapore dollar in world currency markets. Thus, in early April, it fell against the dollar to a mark 1,7740 SGD / USD, that the local currency to its lowest rate since the beginning of the year.

And the island, and the Center, and military base
Singapore - a city-state (in translation from the Sanskrit name means «City Lions»). Until 1820 it was a small trading port. After he went to the British Empire, the British turned the island into a major international trading center and military base in South-East Asia. A number of local populations, based on the Malays, has increased dramatically due to immigrants from China and India. The total area of Singapore, including the small island of 633 square meters. km. The main island from north to south - 22 km from west to east - 55 km. The island lies on the trade route from China Sea in the Indian Ocean, and an important geographical position makes it the most important seaport, financial and industrial center. Approximately 60% of the population employed in the service sector - bankovskofinansovom sector, retail trade and tourism. Currently, Singapore produces petroleum products, chemical components, pharmaceutical products, electronics, textiles, products made of plastics and rubber, steel pipes and groceries. In 1965, Singapore gained independence and became a republic with a presidential administration. In 1967, the Board was established currency broker Singapore (Board of Commissioners of Currency, Singapore), who assumed the role of Mint, and still only it has the exclusive right of issuing banknotes and coins. A role of the central bank plays a central monetary authority of Singapore (Monetary Authority of Singapore, MAS), founded in 1971 as a regulator of the financial and monetary climate in the country. MAS performs all the functions of a central bank except for the issuance of currency.

Orchids, birds, ships, and portraits
Since 1967, Singapore was issued four series of banknotes. The first (1967-1976) - «Orchid» - comprised of notes come in 1, 5, 10, 25, 50, 100, 500, 1000 and 10,000 Singapore dollars. In the center of the front side of each of the 9 bills was depicted branchlet orchids.

The second series (1976-1984) was named «The Birds». She, like the first, consisted of 9 bills, only 25-dollar bill was replaced with 20-dollar. In the left corner of the front of the banknotes were depicted birds. According to the developers of the series, birds personified strength, flexibility and independence of the young republic of Singapore.

Third series (1984-1999) was devoted to the ship. It also consisted of 9 notes, however face values have changed. Thus, the 20-dollar bill was generally excluded, and a new, worth S $ 2. Through all the series are the ships of different epochs, starting from commercial sailing ship to a modern dry for banknotes of higher dignity. This series was given a tribute to Merchant Navy, which has transformed Singapore from a small trans-shipment point in the largest trade port of the world.

The fourth series has its origins in 1999 and called a portrait. A distinctive feature of this series is the introduction of additional security features against forgery and lack of dollar sign. In addition, in the manufacture of banknotes as its foundation is 100% cotton. All the bill shows a portrait of the first President of Singapore Enkika Yusof bin Ishak (Encik Yusof bin Ishak). The series consists of seven notes - 2, 5, 10, 50, 100, 1000 and 10000 dollars. In 1990, oznamenovanie 25 th anniversary of the independence of Singapore has been released into circulation bill worth 50 Singapore dollars. With its production of paper has been replaced by a polymer. But plastic money were not so easy to use, because they have difficulty with the machine identification.

It should be noted that all series have full circulation in the territory of Singapore. Interestingly, in 2001, MAS has refused to release the coins odnotsentovyh, considering that they are not used. Do not be surprised if you receive delivery of dollars with a portrait of the Sultan of Brunei. In Singapore, Brunei Dollar is in circulation in accordance with the intergovernmental agreement and traded at par. Enjoy wide popularity banknotes of large denominations (1000 and 10,000 Singapore dollars), which constitute about 40%, or 4 billion dollars of the total amount of money involved in trafficking.

The Singapore dollar has established itself as one of the most stable currency the region. The Asian financial crisis of 1997-1998, affecting the economy of almost all the countries of South-East Asia, has confirmed this fact. The crisis triggered a chain of bankruptcies and a default. After several decades of strong economic growth of Singapore rolled in an industrial recession, but in 1999 the economic growth of 9%. Economists call Singapore a «four tigers» Asia - along with Hong Kong, South Korea and Taiwan.

Allowed all that is not forbidden
Recently, MAS has conducted a series of reforms of its monetary policy. It was repealed former principle: everything is forbidden, which is clearly not allowed. Only the restriction to prevent speculation against the Singapore Dollar.

The liberalization of the banking sector led to the consolidation of local banks. As a result, a giant three: DBS Bank, United Overseas Bank and OverseaChinese Banking Corporation. Foreign players were given more freedom to service the local market. And Citigroup, ABN Amro, BNP, Maybank and Standard Chartered acquired the status of banks with full privileges, which allows you to have up to 10 of its branches and up to 5 outdoor ATMs. Trade policy in Singapore is based on two fundamental principles: the free market system and focus on external markets. Approximately 96% of imports, imported into Singapore are not taxable. There are no controls on foreign exchange transactions and do not apply protectionist practices. Thanks to these policies are increasing foreign investment in the industrial sector in Singapore. Following last year's volume of exports from Singapore to China exceeded exports to the United States.

Large inflows of foreign currency gives the tourism sector. About 7 million people each year visit Singapore, with the majority - the tourists from Malaysia and Japan. So the sudden emergence and spread across the region and then worldwide, the virus of atypical pneumonia affects on tourism and the national currency.

Deadly virus breaks forecasts
The Singapore dollar rose steadily against the U.S. dollar almost throughout the last year - growth of 6.1%. However, the local currency to the Euro decreased by 10.1%, and by the yen - at 4.3%. There has been a steady growth on the Thai baht and the dollar linked to the local currency. At the same time, the Singapore dollar has passed the position in relation to the Indian Rupee and the South Korean vonu. On the domestic interbank market interest rates remained below those of 2001 and it is correlated with the global trend. Since March of this year, immediately after the first reports of atypical pneumonia, began a slow drift singapore dollar in world currency markets. Thus, in early April, it fell against the dollar up to 1.7740 SGD / USD, that the local currency to its lowest rate since the beginning of the year. MAS has preferred not to intervene in the situation and remain neutral. This means that the Singapore Dollar will be free to be quoted within a certain corridor against a basket of currencies of its trading partners. If economic conditions continue to deteriorate, there is a likelihood that government officials will go to the mitigation of monetary policy to assist the export sector. But even in this situation, the Singapore dollar may fall further.

The emergence of the lethal virus could cause the loss of the country's economy, comparable to the economic crisis of 1997-1998. Because tourism accounts for about 10% of GDP. Recently, Finance Minister of Singapore Lee Hsien Lung (Lee Hsien Loong) lowered the government forecast of GDP growth for 2003 to 2-5%. Private-sector economists suggest that growth will not exceed 2-3.5%, because the problem of health care will be central to the country have at least 6-7 months.

Maxim Semenov