USD is the US Dollar.
When I check the chart for the exchange rate of SGD to USD, it is practically a straight line curve heading up.
SGD is getting stronger and stronger due to the intervention of Singapore government.
Most Asian countries do not allow the currencies to get so strong.
They do not want to lose out in term of exporting manufactured goods to the United States.
That is why they keep the currencies low.
When USD depreciates, their currencies go down as well.
The Singapore government takes a different approach.
They strengthen SGD to combat the inflation rate. The government also gives money to Singaporeans to help them cope with the rising cost of living due to escalating oil price.
It is good news for Singaporeans living in the country, and good news for Singaporeans who want to study or travel to US.
It is also good news for US companies with sales office in Singapore, and US citizens working in Singapore.
However, the strong SGD is bad news for companies which export products to US.
I just hope that the government draws a line somewhere, it is not good to keep appreciating SGD for the sake of keeping inflation low.
If ever the exchange rate of SGD to USD is 1:1, it will kill off the manufacturing companies in Singapore.
Many production workers will lose their jobs.
Even though the companies can relocate to other parts of the world, the lowly paid and low skilled workers cannot.
No country is willing to take in unskilled and highly paid (due to strong Sing Dollars) workers from overseas.
Many highly skilled Professionals are affected by the SGD USD exchange rate too. Most of them work in projects all over the world. Their contracts can last anything from 6 months to 2 years.
When they signed the contract earlier, the USD was stronger. They could maintain the mortgage and other expenses of the family in Singapore.
Now what they earn is lost in currency exchange. Many of them return home, and do not want to take up overseas assignments anymore.
Since my blog is monetized by Google Adsense, and Google Adsense quotes in USD. I am not very happy about the strong SGD too.
If the exchange rate of USD to SGD is 1.5 to 1, I would be happier than the current 1.24 to 1.
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