Derrick Goh on Monetary Authority of Singapore (Amendment) Bill
The Monetary Authority of Singapore determines the level of baseline Official Foreign Reserves (OFR) and will therefore also determine the level of new Reserves Management Government Securities (RMGS) to subscribe to. How then will independence be ensured, given that MAS’ board is made up largely of Government ministers? This question was asked by MP Derrick Goh in Parliament on Tuesday (Jan 11). He also noted that if a higher level of OFR is needed to conduct monetary policy, it seems MAS can redeem RMGS on demand. He wanted to know how a balance will be struck between MAS needing more liquidity in times when markets are under financial stress and GIC potentially having to sell assets in the same conditions.
The Monetary Authority of Singapore determines the level of baseline Official Foreign Reserves (OFR) and will therefore also determine the level of new Reserves Management Government Securities (RMGS) to subscribe to. How then will independence be ensured, given that MAS’ board is made up largely of Government ministers? This question was asked by MP Derrick Goh in Parliament on Tuesday (Jan 11). He also noted that if a higher level of OFR is needed to conduct monetary policy, it seems MAS can redeem RMGS on demand. He wanted to know how a balance will be struck between MAS needing more liquidity in times when markets are under financial stress and GIC potentially having to sell assets in the same conditions.
Popular Shows
