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Aug 19 at 07:29 AM
Indonesia Just Raised Rates to Defend Its Currency. Singapore Can't Do That, And That's the Point 🦖
🔍 The Angle
Indonesia just hiked rates to 5.75% to defend the rupiah. Singapore did not raise a rate at all, because MAS does not set one. That is not inaction, it is a different lever entirely. MAS manages the exchange rate band, and that choice is why your CPF SA return does not need to chase foreign capital.
💰 What It Means For You
Your CPF Special Account pays 4.0% per annum, guaranteed, without competing for footloose foreign money. Indonesia's higher yield exists to compensate for capital flight risk. Singapore's framework, CPF chief among its domestic buffers, was built to avoid that exposure. Sometimes the quieter number is doing more work.
📺 YouTube: https://youtu.be/SuZqOe0IKpk
📩 Substack: https://investingiguana.com/p/indonesia-just-raised-rates-to-defend
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