Guide to Singapore Dollars and Where to Exchange Money

The Singapore dollar, or SGD if you’re feeling fancy, might not be the flashiest currency, but it’s one that quietly punches above its weight.

From its fascinating history rooted in independence to its current status as a reliable regional heavyweight, the SGD is the unsung hero of Southeast Asia’s financial world. Whether you’re wondering where to flash those crisp notes, how it stacks up against global giants like the USD or Euro, or if you should even bother keeping some in your wallet, we’ve got you covered—plus a few tips on where to get the best deal when exchanging your hard-earned cash.

History of Singapore’s currency

Singapore’s currency story is a tale of independence, practicality, and a touch of opportunism. Before 1965, Singapore shared the Malayan dollar with Malaysia, Brunei, and others under the British Empire’s rule. But when Singapore became independent, it needed its own currency to assert control over its economy. Enter the Singapore dollar, launched in 1967 alongside the Singapore Monetary Authority’s efforts to create a stable and reliable currency. Initially, the Singapore dollar was pegged to the British pound, then later to the US dollar and a basket of currencies. This strategic pegging helped stabilize the young nation’s economy. Today, the SGD is free-floating and recognized as one of the most stable currencies in Asia—a quiet powerhouse for a country smaller than many of its neighbors’ cities. It’s proof that good things often come in small (dollar) denominations.

What is the Singapore dollar?

The Singapore dollar (SGD) is Singapore’s official currency and the symbol of its economic might, even if it’s not as globally flaunted as the US dollar or Euro. Denoted by the symbol “$” or “S$” to avoid confusion with other dollars, it’s issued by the Monetary Authority of Singapore (MAS), which keeps a tight rein on its stability. The currency consists of notes in denominations ranging from $2 to $1,000 (yes, big spenders, there’s even a $10,000 note, though good luck finding one) and coins from 5 cents to $1. Known for its strength and stability, the SGD is pegged to a basket of currencies and managed within a secretive trading band—because even currencies like a bit of mystery. Whether you’re buying chicken rice or trading internationally, the Singapore dollar proves that a small nation can wield significant financial influence.

Where can you use Singapore dollars?

Singapore dollars are, unsurprisingly, the star of the show in Singapore—your best friend for everything from hawker food to luxury shopping sprees on Orchard Road. Beyond Singapore’s borders, the SGD enjoys VIP status in Brunei, thanks to a Currency Interchangeability Agreement that allows Brunei dollars (BND) and Singapore dollars to be used interchangeably at a 1:1 rate. But outside this cozy exchange club, the SGD’s reach is more limited. While a few border towns in Malaysia might casually accept it (likely to cater to Singaporean visitors so think JB), you’ll generally need to swap it for local currencies elsewhere. In other words, it’s a superstar at home, a guest of honor in Brunei, and a “tourist in need of conversion” everywhere else.

How does Singapore dollar fare against top global currencies and nearby country currencies?

Here’s how the Singapore dollar (SGD) compares to other currencies over the last 10 years:

• US Dollar (USD): Slight depreciation, trading between 1.20 to 1.40 per USD. Highlights: Reflects USD’s global dominance and interest rate hikes, but SGD’s stability prevents drastic fluctuations.

• Euro (EUR): Relatively stable, ranging from 1.40 to 1.60 per EUR. Highlights: Despite Europe’s economic challenges, the SGD maintains consistent value due to Singapore’s export competitiveness.

• British Pound (GBP): Slight appreciation, moving from around 2.00 to 1.70-1.90 per GBP. Highlights: Brexit uncertainties gave the SGD an edge, benefiting from the pound’s weakened position.

• Malaysian Ringgit (MYR): Strong appreciation, climbing from about 2.40 to around 3.40 per MYR. Highlights: Singapore’s stronger economic fundamentals ensure its currency outshines its neighbor’s. SGD to MYR or MYR to SGD is for sure an important consideration for our readers

• Indonesian Rupiah (IDR): Significant appreciation, with IDR moving from 9,000 to nearly 11,000 per SGD. Highlights: The SGD remains a trusted currency for trade and tourism compared to the IDR.

• Australian Dollar (AUD): Fairly even, trading between 0.90 to 1.10 per AUD. Highlights: Australia’s commodity-driven economy creates volatility, but the SGD holds its ground.

The SGD isn’t flashy, but it’s quietly dependable—strong in the region and steady on the global stage.

Should you hold Singapore dollars?

Yes—if you live in Singapore or regularly visit, the SGD is essential for everyday expenses and a reliable store of value. Its stability, low inflation, and solid reputation make it a smart choice for anyone who prefers a “set it and forget it” approach to their cash.

But if you’re thinking globally, the USD still reigns supreme. As the world’s reserve currency, the US dollar offers more liquidity, international acceptance, and potential gains in a strong economic climate. Personally, many of my friends and I who earn our salary in Singapore exchange our SGD to USD immediately to buy stocks—it’s like giving your money a ticket to play in the big leagues.

Where can you exchange your money in Singapore before traveling abroad?

Here are more specific places in Singapore where you can exchange your money before heading abroad:

• The Arcade at Raffles: Located at 11 Collyer Quay, this spot has several currency exchange services with competitive rates. It’s right near Raffles Place MRT, making it super convenient for those in the CBD area.

• Changi Airport: If you’re running out of time, Changi Airport has currency exchange counters at all terminals (T1, T2, T3, T4). They’re open 24/7, so you can exchange your SGD for foreign currency even at odd hours.

• Mustafa Centre: Situated at 145 Syed Alwi Road, Mustafa is a 24-hour shopping center in Little India known for offering great exchange rates. It’s a favorite for those looking to get the most bang for their buck.

• Raffles Place (Banks and Exchange Services): For a quick exchange, you’ll find several bank branches around Raffles Place, like DBS and UOB, with exchange counters open during office hours.

• Money Changers at Lucky Plaza: Located at 304 Orchard Road, Lucky Plaza has a good selection of money changers with competitive rates. It’s a popular spot for both locals and tourists alike.

• Peninsula Plaza: At 111 North Bridge Road, Peninsula Plaza is home to a few reliable money changers offering favorable rates, especially for regional currencies.

Whether you’re in the city or near the airport, these options will have you covered for all your currency needs before you jet off.