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25-08-2019, 12:14 PM
If I am not wrong, SG monetary policy is a gradual increase in SGD strength while keeping out export competitive. So there are already a background disadvantage of holding other currencies which needs to be considered.
Event like Brexit was (unexpected?) event which can have impact on the x-rate. Speaking of pound, I rem it was about 3 times SGD back around 2004. A few events has caused it to drop to about 1.7 times now.
7-7-2005 London Bombing - 3.0 0 -> 2.7
2008 GFC - 2.7 -> 2.0
2016 Brexit referendum outcome 2.0 -> 1.8
2016- 2019 Brexit drama 1.8 -> 1.7
Well in about 2 months or so, we will see if the new UK Prime Minister can deliver a miracle. If UK really leave with a no-deal Brexit there will probably a sharp fall in pound but that is likely to one of the low point in pound until another major event crashes it.
Event like Brexit was (unexpected?) event which can have impact on the x-rate. Speaking of pound, I rem it was about 3 times SGD back around 2004. A few events has caused it to drop to about 1.7 times now.
7-7-2005 London Bombing - 3.0 0 -> 2.7
2008 GFC - 2.7 -> 2.0
2016 Brexit referendum outcome 2.0 -> 1.8
2016- 2019 Brexit drama 1.8 -> 1.7
Well in about 2 months or so, we will see if the new UK Prime Minister can deliver a miracle. If UK really leave with a no-deal Brexit there will probably a sharp fall in pound but that is likely to one of the low point in pound until another major event crashes it.