Singapore's central bank assures that local financial market is functioning normally

The regulator has left a higher level of liquidity in the banking system.

Singapore’s dollar money market and foreign exchange market are functioning normally despite the heightened volatility in global and domestic financial markets, according to the Monetary Authority of Singapore (MAS).

MAS said that it has left a higher level of liquidity in the banking system through its money market operations. It added that local dollar interest rates have eased in tandem with global interest rates.

Financial markets globally have come under strain in reaction to the now-widespread COVID-19 outbreak, and MAS said that it is ready to ensure the stability of the local financial system should the need arise.

“The nominal effective exchange rate of the Singapore Dollar has eased in an orderly manner within the MAS policy band, in line with weakening economic conditions,” the regulator said in a press release.