GBP/SGD – Live and Historical Rates
The GBP/SGD is another pairing of a major currency with a non-major one. The resulting pair isn’t a major, nor is it a commodity pair. The chart above shows the amount of SGD it takes to purchase a GBP.
The British pound had been locked in a sort of struggle for its very existence for years with the EUR. An EU member, Britain had often contemplated joining the common currency, and with it, the world’s largest economy, the Eurozone. The 2008 financial crisis put an end to that though and the 2016 Brexit referendum put the final nail in the coffin of the British Euro. The world’s 4th most traded currency, and the oldest one still in circulation today, the GBP will be around for many more decades to come. Supported by the massive size of the British economy, the GBP has seen some inflation lately, but it is still the strongest currency in the world value-wise.
The Singapore Dollar was introduced in 1965, when the country gained its independence from Malaysia. During its early years, the SGD was pegged to the GBP as well as to the USD. Nowadays, it is pegged to a basket of currencies which apparently aren’t clearly identified. The authority behind the SGD is the Monetary Authority of Singapore. Thanks to the MAS’s sound monetary policies and the international collateralization, the SGD has been on a tear since 1981, rising against the USD and other currencies.
Although they’re located in economically disparate areas of the globe, the ties between the UK and Singapore are surprisingly strong in a financial sense, and that is well reflected in the significance of the GBP/SGD pair. Although very small size-wise, Singapore has exercised a disproportionately large financial influence in its economic area. Depending on GBP value-trends, the pair may prove valuable as a carry trade vehicle at times.
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