Why S'pore rejected the central bank system when introducing the S'pore dollar in 196

Why S'pore rejected the central bank system when introducing the S'pore dollar in 1967

Singapore was advised to follow suit. International Monetary Fund (IMF) missions to Singapore during this period recommended the adoption of a central bank system.

https://mothership.sg/2021/10/sgd-hi...HUMxsBGyplbrMo

Though the note issue is but one component of money supply (M1), it nevertheless is the fulcrum on which banks create credit.

Only if the country accumulated more reserves by exporting more than it consumed could monetary conditions be more accommodating. (or QE unlimited)

In 1982, the Hong Kong dollar faced a crisis of confidence following the announcement of the colony’s transfer to China in 1997. A currency board system was installed, with the Hong Kong dollar pegged at HK$7.2 to one U.S. dollar. That squashed speculative attacks against the currency.

Today, Hong Kong still abides by the system, which has kept its currency steady through various crises, including the 1997-98 Asian Financial Crisis, when so many other currencies fell like ninepins.

https://i0.wp.com/bestexchangerates....y/hkd-hero.jpg

“For every dollar we issue, there will be a currency board which guarantees that there is that amount in gold or foreign exchange in London or New York or some other place to back it. So the money won’t go down”.