Post
Topic
Board Other languages/locations
Re: Singapore
by
xxjs
on 26/08/2013, 10:26:19 UTC
Singapore currency is weighted against a basket of currencies, I find that it is the most effective way as compared to others.   It gives us far more control over our own currencies and less worries of being attacked by the likes of Soros as in the British pound

This sounds really smart, until you see the history

pegged to pound
pegged to dollar
pegged to a trade weighted basket of foreign currencies (undisclosed weights)
pegged to an undisclosed band around a undisclosed basket of currencies

It is said to be fully backed by the currencies in the basket. But when the elements in the basket change in value, the degree of backing will also change. And you have to wonder, is some of the backing in foreign sovereign bonds, by chance?

The next step is probably a fully floating singapore dollar, unless gold backing or sound money should suddenly become popular, which is improbable.