# Singapore Dollar Nominal Effective Exchange Rate

S$NEER is the exchange rate between the Singdollar and a basket of currencies of the country’s major trading partners. ## Why manage S$NEER?

The Singapore economy is small and open, where gross export and import of goods are more than 300% of GDP. Almost 40 cents of every dollar spent domestically go into imports. This means exchange rate has a much higher influence on inflation and price stability.

## What is done with S$NEER? The Singdollar is allowed to appreciate and depreciate against this basket of currencies, which it does not disclose, within a band. If the threshold is crossed, the MAS will intervene. ## How is the S$NEER adjusted?

1. In 2008, the MAS flattened the slope of the S\$NEER to prevent appreciation of the Singdollar
2. In 2009, they economic recession resulted in a sharp fall of inflation, and the band was moved downwards
3. In Apr 2010, the band was shifted to a positive slope, and upwards, following the recovery of the Singapore economy