SINGAPORE, Aug. 25 (Xinhua) -- Singapore's Trade and Industry Minister Lim Hng Kiang said Monday Singapore's current policy to allow for a stronger Singapore dollar "remains appropriate" as a way to keep inflation low and allow for sustained economic growth.
He made the remarks in parliament in response to a question on whether the Singapore government will continue to adopt a strong Singapore dollar policy in view of the weaker economic growth and export figures, local TV Channel NewsAsia reported.
He was quoted as saying that the Monetary Authority of Singapore has to strike a balance between growth and inflation in crafting its monetary policy.
The de facto central bank has allowed for a stronger appreciation of the local currency since October last year.
"We recognize the strengthening Singapore dollar could have some restraining effect on exports in the short term. There is therefore a limit to how strongly the Singapore dollar can appreciate to offset the effects of global inflation passing through to the Singapore economy. At this stage, the current monetary policy stance remains appropriate," he was quoted as saying.
The central bank is expected to review its monetary policy in October.
