Singapore central bank made $15 billion profit from weak currency, $15 BILLION hor!

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An honorable member of the Coffee Shop Has Just Posted the Following:

http://www.thestar.com.my/Business/B...158bil-profit/

SINGAPORE: Singapore’s central bank posted a S$15.84bil net profit in its last financial year, helped by a drop in the local currency that led to valuation gains on its foreign currency holdings.

The Monetary Authority of Singapore (MAS), in its annual report issued yesterday, also reiterated that the economy was projected to grow 24% this year and kept its core inflation forecast unchanged at 23% for 2014.

But MAS managing director Ravi Menon told a news conference that it had lowered its forecast range for headline consumer inflation to 1.5%-2.0% from the previous 1.5%-2.5%.

The central bank’s net profit for the last financial year ended in March marked a turn around from a S$10.61bil net loss incurred the previous year, when the Singapore dollar’s rise diminished the value of its foreign currency holdings.

The net profit in 2013/14 came as the MAS made investment gains and foreign exchange valuation gains on its official foreign reserves (OFR), which totalled S$343bil at the end of March and make up more than 90% of the assets on the central bank’s balance sheet.

The MAS said its official foreign reserves (OFR) made total gains of S$16.5bil in 2013/14, reflecting investment gains of S$10.6bil and foreign exchange valuation gains of S$5.9bil.

In 2012/13, the OFR made investment gains of S$9.4bil, but had incurred foreign exchange valuation losses of S$19.5bil. — Reuters


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