MAS posts S$10b net loss as Singapore dollar soars

MAS posts S$10b net loss as Singapore dollar soars

SINGAPORE — The Republic’s central bank posted a S$10.61 billion net loss in its last fiscal year as the local dollar’s gains against the yen and euro diminished the value of its foreign currency holdings.

The Monetary Authority of Singapore (MAS) also said the city-state’s economy will “comfortably” meet the official growth forecast of 1-3 per cent for 2013, while inflation for the full year is expected to come in at 2-3 per cent, lower than the earlier estimate of 3-4 per cent.

MAS’s loss for the financial year ended March 2013, its second in three years, was just slightly below the record S$10.9 billion deficit incurred in financial year 2010/11 when the Singapore dollar also soared.

MAS made a net profit of S$2.77 billion in FY2011/12.

http://www.todayonline.com/business/mas-...llar-soars

why on earth a central bank (a govt body) still has to be concerned with making profit?

(23-07-2013, 06:25 PM)pianist Wrote: why on earth a central bank (a govt body) still has to be concerned with making profit?

MAS manages some of Singapore's reserves also. Why, I do not know.

MAS is mostly a central bank based on foreign reserve instead of its own money creation.

So what if it makes a profit? Will money trickle down to the lower income who are struggling for a living?

its like what are those scholars doing
how come they never partial hedge the euro and yen...
10 billion dollar loss is a lot
if divided by 5 million people
thats about $2,000 per head
I am sure they will be getting less votes for 2016 ^^

(23-07-2013, 06:25 PM)pianist Wrote: why on earth a central bank (a govt body) still has to be concerned with making profit?

I won't be surprised if they have commission or bonus for making profits.

(23-07-2013, 06:25 PM)pianist Wrote: why on earth a central bank (a govt body) still has to be concerned with making profit?

*ahem*
much like how the lines between the government and civil service is blurred
much like how the lines between the government and a corporation is blurred.
much like how disconnected the high earners and the common folk have become.
the world is now is a different place

http://www.mas.gov.sg/FAQs.aspx
In order to maintain the stability of the Singapore currency, there will be foreign reserves.
These foreign reserves will depreciate if S$ goes up.

But, I think the main culprit is likely to be the gold price.


4.How does MAS manage the Official Foreign Reserves of Singapore?

The prudent and effective management of the Official Foreign Reserves (OFR) is one of the principal objects set out in Section 4 of the MAS Act . In line with our objectives, the OFR are invested in a diversified range of asset classes and currencies. A significant portion of the OFR is invested in liquid assets to provide foreign currency liquidity to defend the Singapore dollar and maintain the smooth functioning of money markets and the banking system.

Allocation to asset classes and currencies in the OFR are approved by the MAS Board. As a matter of policy, we do not disclose these allocations.

Question:
If you are the boss.
Does it really matter if your biz gain profit in foreign currency but due to currency exchange rate become a lost?

The confusing part is on one hand, your biz is doing well (in term of foreign currency) but in actual facts, your purchasing power in your country is loss?