Singapore Dollar to Indonesian Rupiah exchange rates aren't all the same.
The total cost you are charged by your bank or foreign exchange provider consists of a margin from the interbank mid-rate plus fees.
These margins and fees vary significantly for International Money Transfers and Travel Money transactions as shown below.
Exchange rates can vary significantly depending on the transaction type (transfer, cash or card), currency pair and amount. The below table shows an example of total costs charged by FX specialists and banks for SGD/IDR International Money Transfers. Costs are calculated against the current interbank mid-rate.
When determining the best time to make a foreign exchange transaction, in this case the SGD vs IDR, you should pay attention to the recent market trends for both currencies.
Singapore Dollar (SGD)
Singapore was added to a US watchlist of suspected currency manipulators in May. Though that means little right now in terms of economic implications, it created some negative sentiment that spurred a rise in USD/SGD to a 6-month high (SGD low) of S$1.384.
Overall, it’s been a mixed 2019 for the Singapore dollar, with small gains (<2 percent) against the euro and Australian dollar, but small losses against the US dollar and pound.
In May, SGD was pressured by data showing core inflation at a 1-year low, by an escalation in US-China trade tensions, and after Singapore’s Ministry of Trade and Industry downgraded 2019 growth forecasts. At 1.2 percent, quarterly growth in the Lion City has slowed to its lowest level in a decade.
All said, the Monetary Authority of Singapore will, at best, keep monetary policy unchanged when it next meets in October (there's a chance it could turn dovish).
The rupiah slipped in mid-May to 4-month lows against the US dollar (Rp.14,450) and yen (Rp.132), though it was steady against the Australian dollar (Rp.9,960). This pattern shows how much of the rupiah’s recent movements have been driven by risk sentiment. The rupiah remains historically weak, given its proximity to October’s 20-year low of Rp.15,265 per USD.
Weighing on investor sentiment this year has been the significant escalation in US-China trade tensions. Washington and Beijing both stepped up measures against one another.
For the rupiah, not helping matters in May was news of Indonesia’s worst monthly trade deficit in 6 years, at US$2.5 billion.
With exports struggling, Indonesia’s central bank is under pressure to lower interest rates from 6 percent, but having already pledged to support the rupiah, these rate cuts are unlikely to come, for now.
Capital Economics said in May that the rupiah would be “vulnerable to sudden falls during periods of weak risk appetite.”
DBS warned of “dire consequences” for emerging market currencies like the rupiah if no trade agreement is struck between the US and China.
Why can't I just get the SGD/IDR market rate I see online or in the media?
The mid-rate is the rate you will see quoted online or the news. It is actually just the half-way point (hence mid-rate) between
the last rate at which the SGD / IDR was traded (bought or sold) in the international markets.
All foreign exchange providers charge a fee for providing their service and this fee is usually contained within the exchange rate margin (or difference to the mid-rate).
Some providers such as Transferwise will quote you the mid-rate (or close to) and charge a separate percentage fee.
Getting a good market rate is mainly about timing however the transaction margin
you end up being charged can be considerably reduced by around a few percent (of total amount being exchanged) for
travel money and possibly over 5% to 6% when sending money.
The exact potential savings depends on the currencies being exchanged and the amount you are transferring and if you are willing to shop around.
Indonesia (IDR)
Singapore (SGD)