Is the Monetary Authority of Singapore independent?

Monetary Authority of Singapore

The country of Singapore’s operating central bank is known as the Monetary Authority of Singapore (or simply MAS in its abbreviated form) and was established in 1971 to take the control of money and finance out of the government’s hands and in to a well regulated institution comparable to the central banks of other countries. Before it became its own independent entity various financial operations were undertaken in various governmental divisions, which proved inefficient and at times biased.

The bank is now the issuer of the aptly named Singapore currency, which includes banknotes and coins, and also oversees the insurance industry.

The Monetary Authority of Singapore is the overall institution behind Singapore’s monetary system, banking duties and operates as the governments financial agent and banker. Some of the main responsibilities of the MAS are to promote monetary stability throughout the country, to operate credit and exchange systems that aid growth of the economy and don’t cause debt and to regulate the monetary system so that the economy remains stable.

Structurally the MAS have a managing director, board of directors, with governors above them.

In regards to monetary policy, unlike the typical central banks of the world, the MAS prefer not to alter interest rates to control the system’s liquidity, but instead utilize the SGD market and foreign exchange markets.