How To Identify The Singapore Dollar?

The Singapore dollar (SGD), denoted by the symbol ‘S$,’ is the official currency of Singapore. The Monetary Authority of Singapore (MAS) manages its issuance and regulation. The Singapore dollar has evolved since its inception in 1967, a year after Singapore gained independence from Malaysia. Prior to this, the Malaya and British Borneo dollar was used. The establishment of the Singapore dollar marked a significant step in asserting the nation’s economic sovereignty.

Today, the Singapore dollar is known for its stability and strength, reflecting Singapore’s robust economy and prudent fiscal policies. It plays a vital role in regional trade and finance, often serving as a benchmark currency in Southeast Asia. The SGD is also one of the world’s most traded currencies, attesting to Singapore’s global financial prominence.

Currency Denominations:

The Singapore dollar is available in both coins and banknotes, with each denomination featuring unique designs and security features.

Banknotes

Singapore dollar banknotes are available in the following denominations: $2, $5, $10, $50, $100, $1,000, and $10,000.

$2 Banknote: Predominantly purple, it features a portrait of Yusof bin Ishak, Singapore’s first President, on the obverse. The reverse showcases an image of a traditional Chinese opera.
$5 Banknote: Green in color, it also displays Yusof bin Ishak. The reverse highlights the natural environment with images of the garden city and the Tembusu tree.
$10 Banknote: Red with the same obverse as the $2 and $5 notes. The reverse depicts Singapore’s education system, featuring students and school buildings.
$50 Banknote: Predominantly blue, it features the same obverse. The reverse portrays the theme of sports, with illustrations of athletes.
$100 Banknote: Yellow-orange, featuring the same obverse. The reverse illustrates the theme of youth and the arts, with images of cultural performances.
$1,000 Banknote: Red-orange, with Yusof bin Ishak on the obverse. The reverse showcases the theme of economics, featuring various aspects of the financial sector.
$10,000 Banknote: Brown, the highest denomination, with the same obverse. The reverse presents the theme of government, depicting the Supreme Court and Parliament House.

Coins

Singapore dollar coins are available in denominations of 1 cent, 5 cents, 10 cents, 20 cents, 50 cents, $1, and a commemorative $5 coin.

1 Cent Coin: Made of aluminum, it features the Singapore Coat of Arms on one side and the denomination on the other.
5 Cent Coin: Made of nickel-plated steel, it has the same features as the 1 cent coin, with slight variations in design.
10 Cent Coin: Similarly made of nickel-plated steel, featuring the Coat of Arms and denomination.
20 Cent Coin: Larger than the 10 cent coin, also nickel-plated steel.
50 Cent Coin: Even larger, with similar design elements.
$1 Coin: Bimetallic, with a brass center and a copper-nickel outer ring, featuring a lion symbol and the denomination.
$5 Coin: Commemorative, with unique designs issued periodically to mark special events.

Design Features:

Banknotes

Singapore dollar banknotes incorporate several advanced security features to prevent counterfeiting:

Watermarks: Each note features a portrait watermark of Yusof bin Ishak, visible when held up to light.
Security Thread: A security thread runs vertically through the note, embedded within the paper.
Micro-printing: Tiny, intricate text that is difficult to reproduce accurately without specialized equipment.
Holographic Stripe: On higher denominations, a reflective holographic stripe changes appearance when viewed from different angles.
Color-changing Ink: Certain elements on the banknotes change color when the note is tilted.
Raised Printing: The surface of the banknote has raised prints that can be felt by touch.

Coins

Coins are designed with durability and security in mind:

Distinct Edges: Different denominations have varied edges (smooth, milled, or with indents) to help differentiate by touch.
Bimetallic Composition: The $1 coin’s distinctive two-tone composition makes it easily recognizable.
Embossed Details: Detailed embossing on both sides ensures coins are difficult to replicate.

Currency Code and Symbol:

The international currency code for the Singapore dollar is ‘SGD,’ a standard designation used in financial markets and for international trade. The symbol ‘S$’ is used locally to denote the Singapore dollar, distinguishing it from other dollar-denominated currencies such as the US dollar (USD) or the Australian dollar (AUD).

Exchange Rates:

The Singapore dollar is one of the most stable and reliable currencies globally. Its value is influenced by several factors:

Economic Indicators: Singapore’s GDP growth, inflation rates, and employment figures play a crucial role in determining the strength of the SGD.
Monetary Policy: The Monetary Authority of Singapore (MAS) employs a managed float regime, intervening in the currency market to maintain stable exchange rates.
Global Economic Trends: International trade flows, especially given Singapore’s status as a global trade hub, significantly impact the SGD’s value.
Interest Rates: Relative interest rates between Singapore and other countries influence capital flows, affecting the exchange rate.

As of recent years, the Singapore dollar has maintained a strong position against major currencies such as the US dollar, Euro, and Japanese Yen, reflecting Singapore’s robust economic fundamentals.

Usage and Acceptance:

The Singapore dollar is widely accepted within Singapore for all types of transactions, from daily purchases to large investments. Outside of Singapore, it is also commonly accepted in Brunei due to a Currency Interchangeability Agreement, where Brunei dollar (BND) and Singapore dollar (SGD) are interchangeable at par value.

In regional financial markets, the Singapore dollar is often used as a reference currency. Its acceptance in other countries, however, is generally limited to currency exchange services, where it can be easily converted to local currencies due to its stable and recognized value.

Counterfeit Prevention:

Counterfeiting is a serious crime, and the Singapore dollar incorporates numerous security features to make forgery difficult. Here are tips to identify genuine notes:

Check the Watermark: Hold the note up to light to see the watermark portrait of Yusof bin Ishak.
Feel the Texture: Authentic banknotes have raised printing, especially on the portrait.
Examine the Security Thread: Look for the embedded security thread running vertically through the note.
Inspect the Holographic Stripe: Higher denominations should have a holographic stripe that changes appearance when tilted.
Look for Color-changing Ink: Certain areas of the note should change color when tilted.

If you suspect you have received a counterfeit note, do not return it to the passer. Instead, note any identifying details about the person who gave it to you and report the matter to the police. Hand the suspected counterfeit note to the authorities for further investigation.

Legal Tender Status:

Legal tender refers to money that must be accepted if offered in payment of a debt. In Singapore, all notes and coins issued by the Monetary Authority of Singapore are legal tender. However, there are limits on the amount of coinage that can be used in a single transaction:

For coins of denomination $1 or higher, up to 10 times the denomination can be used.
For coins below $1, up to $2 in total can be used.

Beyond these limits, the recipient can legally refuse to accept the coins.

Monetary Authority:

The Monetary Authority of Singapore (MAS) is the central bank and financial regulatory authority in Singapore. Established in 1971, MAS oversees all aspects of monetary policy, banking, and finance. It is responsible for issuing the Singapore dollar, ensuring its stability, and regulating financial institutions to maintain a sound and progressive financial sector.

MAS employs a managed float regime for the Singapore dollar, intervening in the foreign exchange market to prevent excessive volatility and ensure the currency remains stable and competitive. This approach helps protect the economy from external shocks and maintains investor confidence.

Collectible and Commemorative Issues:

Singapore has a tradition of issuing collectible and commemorative currency to mark significant national events and anniversaries. These special editions are highly sought after by collectors and can hold substantial numismatic value.

SG50 Commemorative Notes: Issued in 2015 to mark Singapore’s 50th year of independence, this set includes a $50 note and five $10 notes, each depicting significant milestones in Singapore’s history.
Commemorative Coins: Various coins have been issued to commemorate events such as the Lunar New Year, National Day, and notable anniversaries. These coins often feature unique designs and are minted in limited quantities.

Collectors can purchase these special editions from the Monetary Authority of Singapore or authorized dealers. They serve not only as legal tender but also as cherished mementos of Singapore’s rich history and cultural heritage.

In conclusion, the Singapore dollar is a well-designed and highly secure currency, reflecting Singapore’s economic strength and stability. Its various denominations, advanced security features, and the role of the Monetary Authority of Singapore ensure that it remains a reliable medium of exchange and a symbol of national pride. Understanding these elements helps in identifying genuine Singapore dollars and appreciating their value in the global economy.