Singapore maintains a managed-float exchange rate regime for the Singapore dollar (SGD). The Monetary Authority of Singapore (MAS) manages the SGD against a basket of currencies of major trading partners and competitors.

Import/Export of Currencies

There are no restrictions on the amount of foreign and local currency that can be brought into or taken out of Singapore. Buying or selling SGD on the foreign exchange market is also unrestricted.

Domestic/Foreign Currency Accounts

Resident Accounts -- Residents are only allowed to maintain foreign currency account with an Asian Currency Unit (ACU)-licensed bank in Singapore.

Nearly all commercial and merchant banks in Singapore operate ACUs, which may accept deposits from, and lend to, other banks and nonbank customers in foreign currency. Details of the terms and conditions of ACUs operations are provided at the links below.

Nonresident Accounts -- There are no restrictions nor limits on nonresidents maintaining SGD or foreign currency bank accounts in Singapore.

Borrowing/ Lending

Domestic Borrowing -- MAS notice 757 places two main restrictions to nonresident financial institutions borrowing locally:

• Banks may lend SGD to nonresident entities so long as total SGD credit facilities to the institution do not exceed SGD5million. For SGD proceeds used outside Singapore above this amount, banks should swap or convert proceeds in excess of SGD5million into foreign currency upon drawdown;

• Banks may be prohibited to extend SGD lending facilities exceeding SGD5million to nonresident entities if there is sufficient evidence to suggest that the institution may use the proceeds to speculative against SGD. Individuals, nonfinancial institutions and corporate treasury centers, classified as nonresidents, are exempt. Moreover, the SGD5million cap may be waived by MAS in some cases.

Offshore Borrowing -- Foreign borrowing is permitted for both residents and nonresidents, subject to withholding tax on interest earned by foreign banks from transactions.