In its annual report, the Monetary Authority of Singapore said it will post a loss of S$30.8 billion for the 2022/2023 financial year, compared with a loss of S$7.4 billion a year earlier.
Singapore has tightened monetary policy three times this year, leading to a broad appreciation of the Singapore dollar against currencies that hold official foreign exchange reserves.
As MAS’ financial results are reported in SGD, there was a significant negative currency translation impact.
The head of the Monetary Authority of Singapore, Menon, said at a media briefing that the impact of negative currency translation was “no cause for concern”. Money market operations are an “essential part” of the MAS’ monetary policy function.