The exchange rate forecast for SGD to CNY has been notably impacted by recent developments in Singapore and China. Analysts have observed that the Singapore dollar is currently trading at 90-day lows around 5.4819 CNY, 1.2% below its three-month average of 5.5468 CNY. This stability, within a narrow range of 2.3%, reflects an ongoing balance in the market despite external pressures.
In Singapore, the Monetary Authority of Singapore (MAS) recently opted to maintain its monetary policy, signaling confidence in economic resilience. Singapore's GDP growth of 2.9% in Q3 2025 has surpassed expectations, contributing to expectations of sustained robust economic performance. However, MAS has also revised its core inflation forecast downward, suggesting decreasing inflationary pressures, which may affect the SGD's strength in the near term. Moreover, ongoing concerns regarding potential U.S. tariffs on key exports could influence MAS's future monetary policy decisions, leading to exchanges being framed under possible SGD depreciation pressure.
In contrast, the Chinese yuan is buoyed by efforts of the People's Bank of China (PBOC) to stabilize the currency and further its internationalization. The PBOC's initiatives to reinforce the digital yuan’s use in global transactions aim to reduce reliance on the U.S. dollar, which could bolster the currency's value. Recent statements from officials indicate a commitment to managing the yuan's fluctuations in the context of global market volatility.
Investors are advised to remain vigilant as any policy shifts from either central bank may create volatility in the SGD to CNY exchange rate. Ongoing measures from China to stabilize the yuan and economic indicators from Singapore will likely play crucial roles in determining the trajectory of this exchange rate moving forward. Businesses and individuals planning international transactions should closely monitor these developments to optimize their currency conversion strategies.
