The exchange rate forecast for the Singapore Dollar (SGD) against the Chinese Yuan (CNY) reflects a complex interplay of economic developments and policy decisions in both Singapore and China. Analysts recently noted that the SGD has reached 7-day lows near 5.5467 against the CNY, close to its 3-month average of 5.5872. The recent trading has shown relative stability, maintained within a 1.8% range, which indicates some resilience amidst fluctuating market conditions.
In Singapore, the Monetary Authority of Singapore (MAS) opted to maintain its monetary policy settings in response to recent economic growth of 1.4% in Q2 2025. This decision came despite economists' divided expectations on future policy adjustments, with half predicting no changes amid easing trade tensions. Core inflation has notably declined, providing MAS with the flexibility to uphold its current approach, which may support the SGD's stability in the near term.
Conversely, developments surrounding the CNY suggest a strengthening of the currency. Capital inflows and a record global trade surplus have prompted China to strategically appreciate the yuan, particularly in light of the underlying trade tensions with the U.S. Notably, the CNY reached its highest value against the U.S. dollar since Trump's election, indicating potential external confidence bolstering the currency. Experts point to China's efforts to promote the digital yuan and reduce reliance on the U.S. dollar as significant factors influencing the yuan's trajectory.
Overall, while the SGD remains fairly stable, its performance against the CNY will be influenced by ongoing economic conditions and monetary policy decisions in both countries. Observers suggest that sustained easing in Singapore’s economy could lead to further depreciation of the SGD, while ongoing strength in China’s economy may support the CNY. Businesses and individuals engaging in international transactions should consider these factors as they assess future currency movement between the SGD and CNY.
