Singapore money market orderly despite global slump: MAS

SINGAPORE, Aug 17, 2007 (AFP) – Singapore’s central bank said the domestic money and foreign exchange markets have been orderly despite the global turmoil sparked by a crisis in the US sub-prime mortgage sector. The Monetary Authority of Singapore (MAS) said in a statement issued late Thursday it has been “closely monitoring” developments in the international financial markets and their impact domestically.

“At this stage, domestic money market and foreign exchange markets are functioning in an orderly fashion and MAS has not needed to conduct any extraordinary operations in the markets,” the city-state’s de facto central bank said.

“However, we stand ready to act if the situation warrants.” The shockwaves from the US subprime credit woes have hit the local stock market, with the benchmark Straits Times Index closing 121.09 points, or 3.70 percent, lower on Thursday to 3,152.16 its lowest level in four months.