The Euro - Everything You Need to Know About Singapore's Currency

Information on the Singapore Dollar denominations, exchange rates and currency transfers...
The
Singapore Dollar – everything you need to know about Singapore’s currency
Are
you sending money to or from Singapore to pay a foreign mortgage, purchase
property, cover living costs or support loved ones?
If
you need to make currency transfers for any of these reasons you’ll need to
understand the Singapore Dollar, exchange rates and how international payments
work.
In
this guide we’ll tell you everything you need to know.
Singapore
Dollar denominations
If
you’ve never handled the Singapore Dollar before, here are the different
denominations you’ll come across.
Coins – 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50
cents, 1 dollar
Notes – 2 dollars, 5 Dollars, 10
Dollars, 50 Dollars, 1000 Dollars
Fun(ish) fact... The entire Singapore national anthem is
printed on the back of the $1000 note in microprint.
What a
difference a rate makes
Whenever
you transfer money abroad exchange rates make a big difference to how much your
funds are worth.
If
you’ve had experience with exchange rates you can go ahead and skip this
section, but if you’re new to the occasionally confusing world of currency
here’s a quick overview of what exchange rates are and why they’re important…
An
exchange rate is the value of one country's currency relative to another. Most
exchange rates are free-floating and will rise or fall based on supply and
demand in the market.
Exchange
rates are typically displayed as two lots of three letters. The three letters
are ‘currency codes’, abbreviations which relate to the country and name of the
currency. For example, GBP is the currency code for the Great British Pound,
while SGD is the currency code for the Singapore Dollar.
So
if you had Pounds but wanted Singapore Dollars the GBP/SGD exchange rate would
tell you how many Singapore Dollars you would get for each Pound.
Even
a seemingly small discrepancy in the exchange rate can make a big difference if
you’re buying Singapore Dollars, and the difference becomes more pronounced
when you’re transferring larger amounts.
For
example...
Currency pair |
Transfer amount |
Exchange rate |
Total |
GBP/SGD |
£250,000
|
1.80 |
$450,000 |
GBP/SGD |
£250,000 |
1.75 |
$437,500 |
|
|
Difference |
$12,500 |
As
you can see, securing the right exchange rate for your currency transfer is
key!
Fun(ish) fact... Singapore has a $10,000
note, the second most valuable banknote in the world. In 2014 the nation
stopped issuing the note to prevent money laundering.
Historic
Singapore Dollar movement
Exchange
rates can move by as much as 5% in a matter of days during periods of
heightened volatility (political shifts, economic crises etc.) but if we look
back over 10 years you can see just how much rates can change.
GBP/SGD
Over the course of a decade the GBP/SGD exchange rate traded at highs of 2.22 and lows of 1.66.
That’s a huge
difference of 0.56 – or $56,000 on a £100,000 transfer!
USD/SGD
The USD/SGD exchange rate, meanwhile, has traded at both 1.20 and 1.45 over the last decade – a movement of 25 cents.
These
graphs show that the GBP/SGD exchange rate is weaker now than it was in 2011
(meaning you’d get fewer Singapore Dollars for your Pounds) while the USD/SGD
exchange rate has strengthened over the last decade.
Fun(ish) fact... The tree printed on the 5 Dollar note
still exists today, if you visit the Botanical Gardens in Singapore you’ll see
the ancient 150 year old tree up close.
What
causes Singapore Dollar movement?
So
we’ve established that Singapore Dollar exchange rates can move quite a bit.
But what causes them to move?
Different
things cause movement in different currencies, but there are several drivers
for SGD fluctuations.
Singapore
Interbank Offered Rate
The
Singapore Interbank Offered Rate (SIBOR) is the benchmark interest rate for
lending between banks within the Asian market. SIBOR is set daily by the
Association of Banks in Singapore (ABS). The banking industry uses an
interbank market for transferring funds and currency, and for managing
liquidity.
Global Risk Appetite
A combination of
factors, such as economic and political stability, a well-regulated and liquid
real estate market, and the success in attracting foreign investment, have earned
Singapore the status of a sanctuary during times of heightened risk aversion.
Currency
transfers to and from Singapore
Our top tips
1.
Be
cautious of interbank exchange rates – rates quoted online are often the
‘interbank’ rate. This is the rate at which banks and financial institutions
buy currency and is not available to private individuals or businesses.
2.
Understand
foreign exchange costs -- some foreign exchange costs can be transparent and
others can be hidden, so it is important to understand what you are paying for.
3.
Find
out more about currency transfer services like limit orders and currency
wallets (more on that below!)
4.
Don’t
leave it until the last minute – make sure to keep an eye on exchange rates in
the weeks and months before you want to make an exchange. Following the market
can help you secure a better exchange rate.
Singapore
currency transfer services
If
you need to transfer money to Singapore there are a number of services you can
use to help you get more for your money.
Currency service |
What do you need to know? |
Spot
contract |
Use
a spot contract when you need to move money ‘on the spot’. Transfers will be
made at the current exchange rate and will take between 24-48 hours depending
on the country and currencies involved. |
Forward
contract |
Fix
an exchange rate up to two years ahead of making a currency transfer. While
fixing the rate in this way would mean you’d miss out if the exchange rate
strengthened, you’d be protected from any negative shifts. |
Limit
order |
Target
a stronger exchange rate. Set the rate you want to achieve and your transfer
will be triggered automatically if the market hits that level. |
Rate
alert |
Set
your target rate and get notified by text or email if the market moves to
that level. |
Regular
payments |
Automate
regular overseas transfers. Remove all the hassle and benefit from excellent
exchange rates and no transfer fees. |
Currency
wallets |
Some
international payment specialists allow you to buy currency in advance and
keep it in a currency wallet until you need it. This allows you to take
advantage of favourable rates and can speed up future transfers. |
Singapore
currency transfer FAQs
How long do
currency transfers to Singapore take?
The
speed of your currency transfer will depend on the provider you use and the
countries/currencies involved. A GBP/SGD transfer should typically take between
24-48 hours, although it can be quicker if you have funds on account.
Is transferring
money to Singapore safe?
As
long as you use a reputable provider your transfer should be safe and secure.
Look for a well-established currency provider who’s regulated by the right
bodies and has good online customer reviews.
How much do
currency transfers to Singapore cost?
If
you use a bank to move money to Singapore you may be charged a transfer fee.
This can be a flat rate or a percentage of the transfer amount.
Some
specialist transfer providers don’t charge anything outside of the exchange
rate they quote, and as they work on smaller margins than banks you’ll receive
a more competitive rate.
What is a
margin and how does it affect my exchange rate?
Banks
and other large financial institutions buy currency at the interbank exchange
rate and add on a ‘margin’ before selling it on to consumers. The larger the
margin applied the less competitive the exchange rate, and the less you’ll
receive.
How much can I
transfer to Singapore?
Again
this depends on the provider you use, but many have no upper transfer limit
when it comes to moving money to Singapore.
This information has been provided by
TorFX
If you need to move money to or from Singapore our currency partner TorFX can help.
TorFX have been offering their customers great
exchange rates, no transfer fees and personal account management since 2004.
They’ve
won the Moneyfacts Consumer ‘International Money Transfer Provider of the Year’
award for six years running (2016 – 2021) and hold an ‘Excellent’ five-star
rating on Trustpilot.
Get a quote now to find out how much you
could save.
You
can also create an account with them in two minutes
online or over the phone. Once you’ve created an account you’ll be able to
check live exchange rates 24/7 and make fast, hassle free currency transfers.