With the Singapore Dollar (NEER) continuing its surge higher (+6% against the USD in 2012), the Monetary Authority of Singapore (MAS) saw a S$10.6 billion loss this year as the "FX impact exceeded the interest, dividend income and other gains from the foreign assets held." This is the 3rd loss in the last 4 years and 2nd largest on record, but of course the central bank notes, "this is not a cause for concern." As if this wasn't enough, the MAS' annual report also details 22 fixed income firms that have been fined and 7 that have been restricted for failure to comply with anti-money-laundering and terrorism-financing rules. The MAS suggested firms 'improve' their screening of customer names and sources of wealth in order to prevent the financial system from being used to harbor or act as conduit for illegal funds. It seems to us like they may be a little late.

GDP growth sliding away, inflation remains elevated, currency continues to strengthen...

Full MAS Annual Report below...

MAS AR 201213