SINGAPORE, July 5 (Xinhua) -- The Monetary Authority of Singapore (MAS) posted a net loss of 30.8 billion Singapore dollars (22.8 U.S. dollars) for the 2022-23 financial year (April 2022-March 2023), reflecting the effects of monetary policy tightening to bring down inflation.
This is the largest loss MAS has ever recorded.
Ravi Menon, managing director of MAS, told a press conference that the loss was attributed to two factors - negative currency translation effects of a stronger Singapore dollar and high-interest expenses from mopping up excess liquidity in the banking system.
About 70 percent of the net loss, or 21.4 billion Singapore dollars, was due to the negative currency translation effects of a stronger Singapore dollar, Menon explained.
The Singapore dollar appreciated significantly during 2022-23 financial year as MAS tightened monetary policy to dampen inflationary pressures.
The remaining 30 percent of the loss, or 9.0 billion Singapore dollars, was due to net interest expenses from MAS' money market operations to mop up excess liquidity in the banking system, he said. (1 Singapore dollar equals 0.74 U.S. dollar) ■
