DBS Forecast: SGD = USD by 2040! Could SG Become Next “Safe Haven” Hub?

Comments

• icycrystal

  10-26

  icycrystal

  @nomadic_m @rL @Shyon @Aqa @koolgal @SPACE ROCKET @LMSunshine @rL @Universe宇宙 @Zarkness @HelenJanet

  Do you believe SGD can really reach parity with USD by 2040?

  2️⃣ If the USD keeps sliding, would you increase your gold allocation?

  3️⃣ How would you position your portfolio for a long-term USD downtrend?

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  • Universe宇宙: 
    [ShakeHands]
  • koolgal: 
    Yes I believe SGD can reach parity with USD.🚀🚀🚀🌛🌛🌛💰💰💰
• MHh

  10-25

  MHh
  I think it is possible for SGD to reach parity with USD by 2040. Singapore employs a strict stewardship of growing the economy and managing the strength of its currency. Although Singapore also has huge debts, it manages it and steer the economy to enable strong growth and being a safe haven for companies by having the right policies, stable government and the right workforce. This helps it strengthen against the USD.
  
  
  I won’t buy gold even if the USD keeps sliding. I think there is a possibility of the Chinese yuan being one of the world’s reserve currency. Also, there are many stocks that can offer greater yield than me holding gold. In terms of returns, I prefer to hold stock.
  
  
  My preference has always been the ETF that tracks the world index eg VTI so I would keep to that. I also do thematic ETFs eg in semiconductors like SMH and this strategy has fitted my risk appetite and generated good returns. A weakening USD would affect returns but that affects almost all asset classes.
  • Universe宇宙ReplyMHh: 
    [ShakeHands]
  • MHh: 
    @Success88 @SPOT_ON @SR050321 @Kaixiang @Wayneqq @Fenger1188 @LuckyPiggie @DiAngel @Universe宇宙 @HelenJanet come join
• Shyon

  10-26

  Shyon
  DBS’s projection is bold but exciting — doubling Singapore’s GDP and seeing the STI hit 10,000 by 2040 reflects confidence in our strong fundamentals. With sound fiscal discipline, innovation, and steady capital inflows, I do think long-term appreciation of the SGD is realistic, even if the pace may be gradual.

  Reaching USD-SGD parity, however, is ambitious. It would require both continued SGD strength and a structurally weaker USD. If the dollar keeps sliding, I’d likely raise my gold allocation — it’s a reliable hedge against currency weakness and global uncertainty, and historically performs well in such cycles.

  For portfolio positioning, I’d stay diversified with solid Asian equities, quality dividend stocks, and some exposure to gold or other real assets. The USD could stay under pressure for years, but disciplined, long-term investing remains the best way to capture these structural opportunities.

  @Tiger_SG @TigerStars @Tiger_comments

  • koolgalReplyShyon: 
    You too 🏖️🏖️🏖️
  • ShyonReplykoolgal: 
    Have a nice weekend
  • koolgalReplyShyon: 
    Thanks 😍😍😍
  • Shyon: 
    Come and join @icycrystal @rL @nomadic_m @GoodLife99 @Michane @SPACE ROCKET @ELI_59 @1PC
• koolgal

  10-26

  koolgal
  🌟🌟🌟DBS $DBS(D05.SI)$ bold forecast that the Singapore Dollar (SGD) could reach parity is more than just a currency call.  It is a signal of Singapore's rising economic clout, disciplined policy and safe haven appeal.  This opens up a rich canvas for my portfolio repositioning.

  A stronger SGD means overseas assets, especially US Dollar denominated ones become cheaper over time.

  Singapore Listed Companies like DBS, OCBC and UOB may see valuation uplift, not just from earnings but from currency rerating.

  However even with a strong SGD, global inflation and geopolitical risk still persist.  So investing in Gold ETFs such as $SPDR Gold Shares(GLD)$ would protect my purchasing power and serve as a hedge against inflation.

  So if SGD truly reaches parity with USD by 2040, it isn't just a currency milestone, it is truly a celebration of how far Singapore has risen.

  Majullah Singapura🇸🇬🇸🇬🇸🇬🥰🥰🥰

  @Tiger_SG @TigerStars @Tiger_comments @CaptainTiger @TigerClub

  • ZarknessReplykoolgal: 
    Joined shifu ! 😘😘🌹🌹
  • koolgal: 
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• Mkoh

  10-26

  Mkoh
  According to the analysis, Singapore's nominal GDP is expected to more than double from US$547 billion in 2024 to between US$1.2 trillion and US$1.4 trillion by 2040, driven by an average annual real GDP growth rate of 2.3%. On the currency front, DBS forecasts the SGD could reach parity with the USD—trading at 1:1—before or by 2040.
  The SGD is already recognized as a regional safe haven, particularly in Asia, thanks to Singapore's political stability, fiscal discipline, low inflation, and robust monetary policy managed by the MAS through a managed float against a basket of currencies.
  In summary, yes, SGD has strong potential to solidify as a "new" safe haven by 2040, evolving from its regional niche to a more global one, especially for USD diversifiers in emerging markets and Asia-Pacific portfolios. The DBS outlook underscores this through projected growth and inflows, but success hinges on Singapore maintaining its edge in productivity, openness, and neutrality
  
  
  
  
  
• phagefish

  10-26

  phagefish
  USD: SGD has bounced from the bottom 1.25. now it is 1.3. unlikely 1:1 even in 2040 because us GDP is also growing and likely faster than Singapore. DBS themselves are firing people. GDP per capita goes up but GDP itself may be stagnant at least within the visibility, explaining DBS firing.