Singapore and Malaysia have severed their currency interchange- ability deal. The move announced earlier this?
GV of down town Singapore
Money exchanger sign and interior of money exchanger (2 shots)
Stock exchange sign and empty office
VS of banks in Singapore
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Background: Singapore and Malaysia have severed their currency interchange- ability deal. The move announced earlier this week, has underscored the drifting of ways between the two countries as a result of sharpening economic competition.
Bankers in Singapore have stressed that Malaysian dollars will fetch the same prices in Singapore for the next three months, but that after that the rates will be subject to change.
The Malaysian government, in announcing the split, said that Singapore's leading position as a trading market and financial centre was making it difficult for Malaysia to develop its institutions and finance programmes.
It was also announced that Malaysia will shortly open its own stock exchange, rather than deal through the Singapore markets as in the past.