Recent developments surrounding the Singapore Dollar (SGD) and the Qatari Riyal (QAR) indicate a complex interaction of monetary policies, economic indicators, and external pressures that influence their exchange rate dynamics.
Analysts have noted that the Monetary Authority of Singapore (MAS) has adjusted its monetary policy multiple times in 2025, culminating in an easing stance aimed at supporting economic growth amid declining core inflation. As of January and April 2025, MAS reduced the rate of appreciation of the SGD nominal effective exchange rate (S$NEER) band, responding to weaker inflation and trade tensions, particularly stemming from U.S. tariffs on Singaporean exports. The continued cautious approach from MAS is evident as they maintained their policy stance in July and October 2025, weighing the stability of the SGD against external economic pressures.
Economic indicators have demonstrated mixed results for Singapore, with a notable slowdown in core inflation, recorded at just 0.6% by May 2025, compared to 2.8% the previous year. Additionally, GDP growth moderated in the latter part of the year, reflecting the impact of global trade challenges. Against this backdrop, the SGD has reached 90-day highs near 2.8395 QAR, trading 1.0% above its three-month average, indicating some strength in the currency underpinned by domestic stability.
On the QAR front, the Qatar Central Bank (QCB) has taken proactive measures to enhance the efficiency of its currency through the launch of the Real-Time Gross Settlement System (QA-RTGS), aimed at streamlining currency transactions. The QCB also reduced interest rates in late 2024, which, combined with an increase in international reserves, aims to support economic growth and stabilize the QAR. Moreover, forecasts from Qatar National Bank indicate potential moderation in the US dollar's strength, which could also influence the QAR's value.
It's also important to consider the oil market, as the QAR is heavily influenced by oil prices. Currently, oil is trading at $60.89 per barrel, about 3.9% below its three-month average, with high volatility noted in recent months. This decline and fluctuation in oil prices can have direct repercussions on the QAR due to the country’s economy's dependency on oil revenues.
In summary, the SGD to QAR exchange rate dynamics are influenced by Singapore's monetary policy choices in response to inflation and global trade pressures, alongside Qatar's economic stability measures and the broader oil market trends. Investors and businesses should closely monitor these developments as they navigate financial transactions involving these currencies.
