Singapore: Improved currency unlikely to affect trade
The Singdollar fell more than 1 per cent against the greenback on the news, but the action stopped t…The Singdollar fell more than 1 per cent against the greenback on the news, but the action stopped there. For exporters and importers alike, it is business as usual.
Currency volatility is just one of many market forces affecting vegetable prices, said Mr Chia Chong Peow, managing director of Chia Teck Shun Food Impex Co.
The reality is that global growth is so sluggish, unless you're talking about an outsized depreciation of 15 to 20 per cent, it won't make a difference.
"The market rate fluctuates depending on the weather, the harvest, supply and demand. If the price of kang kong is high, you can change to other vegetables; there are so many," said Mr Chia, shrugging off the need for currency-hedging products.
A case in point - Malaysia's ringgit has been the best-performing regional currency this year. But Malaysia's proximity to Singapore also makes it a seller's market for vegetable farms, so Mr Chia had already been sourcing his main supply from China, India and Australia.
In China and India, prices are negotiated in United States dollars, he adds. The greenback may be down more than 3 per cent against the Singdollar so far this year but the slide is not extreme, alongside gyrations of some developing nations' currencies.
