Monetary Authority of Singapore monitoring impact of US tariff on local economy

The central bank and integrated financial regulator stated that Singapore's foreign exchange and money markets continue to function normally, but it stands ready to curb any excessive volatility in the market.

"MAS stands ready to curb excessive volatility in the Singapore dollar and to ensure that Singapore's foreign exchange and money markets continue to function in an orderly manner," it said in a statement on Thursday.

On Wednesday, Trump signed an executive order that will impose a baseline 10 per cent tariff on all countries, as well as individualised reciprocal higher tariffs on countries with which the United States has the largest trade deficits.

These will take effect on April 5 and April 9, respectively. Singapore is subject to the baseline 10 per cent tariff.

These tariffs will remain in effect until Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.