<article>The Monetary Authority of Singapore (MAS) is transferring $33 billion (S$45 billion) out of its $404 billion in foreign exchange reserves to sovereign wealth fund GIC for longer-term investments.</article>

The Monetary Authority of Singapore (MAS) is transferring $33 billion (S$45 billion) out of its $404 billion in foreign exchange reserves to sovereign wealth fund GIC for longer-term investments.
According to a statement, MAS said that the amount represents an &#8220;excess over what it deems necessary to maintain confidence in Singapore’s exchange rate-centred monetary policy&#8221;. The transfer will take place in May 2019.
The central bank transfers foreign exchange reserves to GIC periodically but it has not previously disclosed any amount.
MAS added that it will disclose more details on its next actions around Singapore&#8217;s monetary policy. This will include releasing data on foreign exchange intervention every six months, beginning with data for the second half of 2019.
Singapore&#8217;s monetary policy is managed through exchange rate settings rather than interest rates, allowing the Singapore dollar to rise or fall against a basket of currencies within a policy band.
The city-state has been undergoing a political transition in recent months. The cabinet reshuffle saw a number of new appointments, including Heng Swee Keat replacing Tharman Shanmugaratnam as Deputy Prime Minister on 1 May.
Meanwhile, GIC also appointed Shanmugaratnam as its deputy chairman this month. In this role, Shanmugaratnam will assist GIC chairman Lee Hsien Loong to lead the board in overseeing long-term asset allocation and portfolio performance. He had been GIC Director and Chairman of the Investment Strategies Committee (ISC) since May 2004 and July 2011 respectively.
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MAS said that the amount represents an "excess over what it deems necessary to maintain confidence in Singapore’s exchange rate-centred monetary policy".

SG's central bank to transfer $33b to GIC for longer-term investments

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