Opportunities for Singaporeans if 1 SGD = 1 USD

The idea of the Singapore Dollar (SGD) reaching parity with the US Dollar (USD) might sound like a longshot, but according to some analysts, it’s starting to look a lot more plausible.

In an interview with CNA in May, Mr Mansoor Mohi-uddin, chief economist at Bank of Singapore, said SGD-USD parity could happen “in our lifetimes”.

“If Singapore continues to run very large current account surpluses and continues to attract very large capital inflows owing to its status as a global financial centre, then the underlying path of the SGD will remain upwards against the USD.

“Eventually the SGD will therefore hit parity against the USD,” he said.

Meanwhile, the US-based financial firm Jefferies Group also predicted that the Singapore dollar could rise to the same value as the US dollar within the next five years, as reported by Bloomberg.

What are the recent USD/SGD trends?

• The USD/SGD rate has dropped by around 6.8% so far this year, from around 1.37 in January to around 1.27 at the end of June – the lowest it’s been since 2014.
• In the last month, USD/SGD steadied between 1.27-1.28, reflecting a stable yet strong SGD.
• According to one bank forecast, USD/SGD could drop to 1.265 by Q4 2025.

Will it really happen? (and if so, when?)

If current market conditions and trends persist, we could see 1 SGD = 1 USD by roughly 2028-2035 or sooner if the USD falters, according to some analysts.

In a May 5 note, Mr Mohi-uddin pointed out that the Swiss franc (CHF) achieved parity with the US dollar after the 2008 financial crisis and never looked back. Today, 1CHF = 1.26 USD.

Both Switzerland and Singapore are small, open economies with large financial centres, and attract major capital flows that cause their currencies to appreciate, said Mr Mohi-uddin.

A global USD crisis could push the Singapore dollar toward parity suddenly, but it’s “more likely to happen without a crisis”, he added.

However, parity isn’t a given. In fact in 2011-2012, the USD/SGD exchange rate fell as low as 1.22. However, the USD soon recovered, leaving Singaporeans facing higher exchange rates once more.

Some of the factors at play include:

• Market conditions
• Government policies or currency interventions
• Regional and global stability

Still, it’s fun to imagine the possibility. Furthermore, the current drop in USD/SGD already bears some interesting opportunity for all Singaporeans.

Here’s what it could mean for you if parity does happen (and opportunities you can already reap now with the stronger SGD).

1. Investing globally becomes more efficient

A stronger SGD not only means cheaper access to the world’s biggest stock market (with some of the world’s biggest companies), but also an opportunity for you to diversify your cash and exposure.

Investing in other countries spreads your risk. If Singapore faces a rough patch, your overseas investments can keep your portfolio balanced.

Read more: Why your money needs a “passport”

2. Overseas spending is now more affordable

A stronger SGD makes life abroad more affordable in multiple ways.

• Travel becomes cheaper, with accommodation, food, shopping and attractions priced in USD now costing less in SGD terms.
• Tuition fees for overseas education, which are often denominated in USD, represent a major long-term expense. With a strong SGD, you either pay less or can afford higher-quality education for the same price.
• Online services and subscriptions like cloud software, e-commerce platforms, or media streaming could become more budget-friendly.

This isn’t just a savings opportunity. It’s a chance to access better experiences and services globally, with less financial strain.

3. Building a USD emergency fund is easier

When the SGD is strong, it makes sense to convert a portion of your savings into USD, creating a more globally resilient financial buffer.

Why?

• It diversifies your currency exposure. Helpful in times of SGD weakness or global volatility.
• It prepares you for overseas emergencies such as medical care, family needs or travel disruptions.
• It helps you avoid panic FX conversions later, when rates may no longer be in your favour.

This fund doesn’t need to be large – Just enough to cover travel, contingency expenses, or even opportunistic purchases or investments in USD.

Related: 5 effective ways to build an emergency fund

4. USD-priced insurance now offers more value

Certain insurance products, like universal life or endowment plans, are denominated in USD. When the SGD is strong:

• Premiums are cheaper in SGD terms, making it a cost-effective time to start or top up policies.
• Payouts or returns in USD can serve as a currency hedge, protecting your family or legacy in a globally useful denomination.

If you’ve been considering global coverage or legacy planning, this currency moment gives you added value.

Related: Prestige Index Income

Don’t just watch the currency, act on it

SGD = USD may still be a headline in the making, but the current strength of the SGD is very real and very actionable.

Whether it’s:

• Expanding your global investment strategy
• Saving smarter for future international goals
• Locking in affordable insurance or education

This is a rare currency moment that gives Singaporeans more global leverage than usual. Even if parity never happens, your proactive choices now will put you ahead later.