It is easy to predict the Singapore dollar’s future because there are many pointers to it. You see, the strength of a currency is the number one reflection of the respective country’s prosperity. Having said this, and considering the direction the world economy seems to be taking, most experts see this as being likely to be in favor of Singapore and therefore we expect the Singapore Dollar to continue being even stronger in the foreseeable future.
Here is how I see this panning out. The economy of Singapore will continue to grow, no doubt about that. This is because more people will consider the country the gateway to China and the rest of Asia boosting the already robust airline industry to higher levels. Furthermore, this interest leads to an influx of foreigners in the name of investors, who are just tourists anyway. This will be a boost to yet another of the country’s biggest enterprises: the tourism industry. This is a classic phenomenon that results from, among other factors, the country’s geographical, political, and economic position relative to other Asian countries.
America is also very wary of the rise of China and looking to tame them, and the Singapore dollar provides a breathtaking opportunity to do this. There will most probably be inclination towards using the latter rather than the Chinese currency and this will obviously boost Singapore. Although this may seem a little far-fetched right now, you don’t expect the USA to just sit and watch the rise of China, do you? Right now, the most viable option, unless you are considering the Japanese Yen (which I personally am not) would no doubt be the Singapore dollar. Anyhow, let’s wait and see how this plays out in the coming months.
The unmatched political integrity and transparency of Singapore is certainly not a common thing in most of Asia, and with this, it is certainly going to add an advantage just like before the valuing of the currency. Most people continue to consider the Singapore dollar another secure “safe haven” currency, and more and more continue to develop interest in its host country. Every economy needs accountability and being so in Singapore, this is a major attraction to investors. Luckily for them, Singapore realized this early and if they continue with this philosophy, it’s going to be difficult to stop them. Though this cannot be concluded with a hundred percent certainty, it seems you are very safe in making a long term investment in the Singapore dollar.
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