Recent forecasts for the SGD to CNY exchange rate reflect a complex interplay of domestic policy decisions in Singapore and market interventions in China. As of December 4, 2025, the SGD is trading at 5.4567 CNY, which is just 0.7% below its 3-month average of 5.4935. The rate has remained stable, fluctuating within a 2.6% range from 5.4355 to 5.5758, suggesting limited volatility in the short term.
Analysts note that the Monetary Authority of Singapore (MAS) is adopting a cautious approach, having recently eased monetary policy due to lower-than-expected core inflation. Despite the easing, the economy has shown unexpected resilience, with a third-quarter growth rate of 2.9%, significantly beating expectations. This resilient performance supports the SGD, although pressures from external factors, including ongoing trade tensions with the U.S., may influence future decisions by MAS.
On the Chinese side, state-owned banks have been actively purchasing U.S. dollars to curb the yuan's rise, which has recently reached a 14-month high. This intervention reflects the People's Bank of China's (PBOC) strategy to manage volatility while promoting the yuan's international stature, aiming to stabilize the currency amid challenging economic conditions. Moreover, global investment firms forecast a potential strengthening of the yuan beyond the 7-yuan-per-dollar threshold in 2026, citing narrowing yield differentials with the U.S. as a primary driver.
Overall, the combined outlook suggests that while the SGD may see support from domestic economic strength, external risks, particularly stemming from trade relations and U.S. monetary policy, will continue to influence its performance against the yuan. Businesses and individuals engaging in international transactions should closely monitor these developments, as any significant shifts in policy or economic performance could lead to fluctuations in the SGD/CNY exchange rate.
