The central bank of Singapore posted its first loss in nine years, for the financial year ending March 31st, 2022. The net loss of S$7.4 billion was attributed to lower investment gains, higher interest expenses, and a large negative foreign exchange translation effect, according to the annual report, which was released on the 19th.

The last loss for the central bank was in the 2012-2013 financial year, when it posted a S$10.61 billion net loss.

Singapore’s official foreign reserves posted a net loss of S$4.7 billion as of end-March. Investment gains of S$4 billion were outweighed by a stronger Singapore dollar, producing a negative foreign exchange translation effect of S$8.7 billion.

Over the reporting period, the Singapore dollar gained 4% over the British pound, 5% over the Euro, and 9% against the yen.

Higher interest expenses on domestic money market operations were the primary driver that raised expenditures, to S$2.8 billion.

Total capital and reserves of MAS was S$40.1 billion as of 31 March, 2022.

The momentum behind Singapore’s growth has slowed so far this year as markets have taken a step back, but the economic outlook appears on track to reach the lower half of the 3%-5% GDP growth prediction.

Singapore’s growth momentum has slowed this year but the economy remains on track to come in within the lower half of the 3 per cent to 5 per cent GDP growth forecast, the MAS said.

Ravi Menon, managing director of MAS said at a press conference, “Taming inflation is like trying to slow down a speeding car on a gentle slope. It takes a combination of forcefulness and calibration. This is why central banks all over the world tighten monetary policy in a series of well calibrated steps and closely monitor the impact of their actions before deciding on the next step… As of now, we expect neither a recession nor a stagflation in Singapore next year.”