Does Singapore’s currency regime still suit its needs?

The decision by the Swiss National Bank (SNB) to abandon its exchange rate ceiling has created questions about the sustainability of other currency regimes. We think there is little chance of the Monetary Authority of Singapore (MAS) overhauling its policy framework in the near term. However, a messy unwinding of a credit bubble that has built up in recent years would pose serious questions about the wisdom of ceding control over interest rates to the US Federal Reserve.