Recent developments point to a cautious outlook for the SGD to CNY exchange rate, with various factors impacting both currencies. The Monetary Authority of Singapore (MAS) has maintained its current monetary policy, reflecting confidence in Singapore's economic resilience as the country reported a stronger-than-expected GDP growth of 2.9% year-on-year in Q3 2025. Economists have noted that this robust performance, coupled with a downward revision of core inflation forecasts to 0.5% to 1.5%, could support the SGD against the CNY in the near term unless external pressures arise.
On the other hand, the Chinese yuan is currently facing challenges linked to international trade. China is actively promoting the yuan's usage in global transactions and is working to internationalize the currency to reduce its reliance on the U.S. dollar. However, the yuan has seen pressure from concerns about stability, especially with the People's Bank of China's efforts to manage excessive fluctuations in the currency's exchange rate. Recent comments from U.S. Treasury officials suggest that the yuan’s valuation is seen as a more significant issue for Europe, which could influence overall market sentiment towards the CNY.
Currently, the SGD to CNY exchange rate stands at 5.4776, which is 1.1% below its 3-month average of 5.5395. The exchange rate has been relatively stable, trading within a 2.5% range of 5.4669 to 5.6056. Market analysts indicate that continued economic resilience in Singapore and stabilization efforts in China could lead to a balanced exchange rate moving forward. However, the potential impact of external factors, including trade relations and U.S. tariff policies, will be critical to watch in determining the future trajectory of the SGD against the CNY.
