Parity between SGD and USD by 2040 is possible but unlikely. It would require a ~30% SGD appreciation, driven by strong productivity, fiscal prudence, and global capital inflows — while the USD must weaken structurally. Singapore’s fundamentals are sound, but the USD’s reserve-currency strength and liquidity demand make full parity a stretch. Treat it as an optimistic scenario, not a baseline.

If the USD keeps sliding, I’d moderately raise gold holdings (to 5–10%) as a hedge against currency weakness and inflation. Gold performs well during dollar declines, but excessive exposure limits growth.

For a long-term USD downtrend, diversify currency exposure (SGD, EUR, AUD), favour real assets (gold, REITs, commodities), and invest in global firms with multi-currency earnings. Avoid over-leveraging in USD debt and keep liquidity for rebalancing.

Overall, balance hedging and growth — prepare for SGD strength, but don’t bet solely on parity.

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

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  • Interesting perspective
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