The Singapore Dollar
The Singapore dollar has only been in existence since 1967, so it is a relative newcomer to the global currency market. Usually the dollar is indicated by using the symbol $, which is the internal means of identifying it as a unit of currency, but in the foreign market, it is generally indicated by using S$ (the S denoting it as the Singapore dollar).
It is broken down into cents, as most dollars are and is available in $2, $5, $10, $20 $50, $100, $1,000 and $10,000 notes. These notes were at first only available as $1, $10, $50, $100 and $1000. The other notes followed later, as different series' of notes were issued (and the $1 removed).
It is not uncommon to hear the Singapore Dollar referred to as the Orchid dollar. This is because the very first series of notes issued featured an orchid, signifying the majestic role that this most exquisite of flowers has within the local culture (it is Singapore's national flower). The title somehow stuck, so despite the various different series' of notes issued, they can still be referred to as the Orchid dollar.
History of the Singapore Dollar
Yet it is strange that the dollar is so relatively young, given that Singapore has been a vibrant economic force and trading post for centuries. The reason for the lack of a standard of currency is predominantly because Singapore as we know it today, did not exist until the 19th Century. Instead it was part of the Malay Peninsula and although it has a rich and colourful past, it was very much part of the peninsula and not an island in its own right. Part of its history is inextricably linked with the currency in use and the history of currency in Singapore is extremely interesting.
Early historical records show that the Chinese discovered Singapore in the 3rd Century A.D. However, it was really only in the 14th Century that Singapore became more prominent, when it became part of the Sultanate of Malacca and subsequently, part of the Sultanate of Johor.
During this period, various currency standards and units of money were used. Sometimes merchants made their own money from materials such as tin or gold and used them to exchange goods. Or Mexican and Spanish dollars were often used, although the official standard was actually twofold, namely the Penang and Indian currency systems. These were coin based and did not use paper notes, as we do today.
However, Singapore was soon to feel the effect of the colonialisation of the Malay Peninsula and as the 19th Century dawned, with it came 'paper money' introduced by large private banks, such as the Asiatic Banking Corporation. The Dutch, British and Portuguese all had a presence in this area and Singapore began to be viewed as an important place to establish a port, since it had a strategic setting and a good harbour which could accommodate trading ships. The British, via a treaty with the Sultan of Johor, effectively 'created' Singapore as an entity in 1819.
The Malay Peninsula, of which Singapore was an important part, all used the Spanish dollar and then the Indian rupee. However, various other currencies were in use and the whole system was exceptionally confusing. As a result, in 1845, the British put a stop to various systems of currency being in circulation and introduced what became known as the Straits dollars. Basically this was a dollar based against the Spanish dollar or the peso system that was used in Mexico.
And so for the next forty odd years, Singapore used the Straits dollar, even though at times it was almost worthless. Then the Japanese invaded in 1941 and they insisted on Singapore using the Japanese Yen. Yet once the war had ended change was once more in the air.
A Commissioners of Currency Board was established to finally sort out the issue of money within the Malay Peninsula, which included not just Singapore, but also Borneo, Sarawak, Brunei and Malaysia. This board was to issue the sole currency for the region and ensure that only one type of currency was being circulated and from 1952 until 1963, this seemed to operate quite efficiently.
Then in 1963 Malaysia and Singapore joined forces. Singapore became part of Malaysia, albeit with autonomous powers. However, this was not to be a happy marriage and Singapore was expelled from the country two years later. This expulsion resulted in the unit of currency also going into meltdown and so Singapore was once more left with no currency system.
Since this situation could not continue indefinitely, the Government quickly decided that there was only one thing to do, namely to issue its own currency and this it did in 1967, through its very own Board of Commissioners for Currency. And so the Singapore Dollar or Orchid was born.
The coins issued alongside the paper dollars, were all cents, in the standard denominations of 1, 5, 10, 20 and 50 cent coins being issued, thus marking the dollar unit as a standard decimal system. Coins issued at this time were all cupro-nickel with only the 1-cent coin being made of bronze.
Current Currency in Singapore
In Singapore today, cash transactions are often the norm and whilst it is possible to pay for meals and hotel accommodation, it is usual that any smaller items you buy will be paid for using cash. Cash can also be a useful bargaining tool if you want to get a bargain, since it can help if you are bartering. Vendors will be much more willing to broker a deal if they know that you will be paying for the goods in cash.
Travellers to Singapore should carry enough cash to ensure that they can always access transport and so on, but not too much that you may be wiped out if someone steals your wallet or purse. So err on the side of caution; always take some cash, but also some travellers cheques, as well as a credit card so that you can always be sure of having access to at least some money.
Exchanging Money
Banks will exchange foreign money for dollars, but the exchange rate does vary between banks and you may also incur a service charge for exchanging money and travellers. There are also exchange booths where you can change money in most of the shopping malls and you may actually get a better rate here, so your money goes that little bit further.
However, probably the best place to change your cash is in one of two places: Change Alley which is next door to the train station at Raffles Place, or at Mustafa, which is in Little India. At both of these locations you will find extremely competitive rates and most currencies can be exchanged, so you don't have to rely on banks only accepting the major foreign currencies.
But if you want to exchange quite substantial amounts of money, then always ask for a quote, because you will get a better deal and you can also then see if it can be bettered elsewhere, particularly at Change Alley.
It can be tempting to exchange money at the airport, but the fact is that you will get a pretty poor deal here, so only change enough to get you into the city and then exchange more here. If you are travelling on after a few days then try to exchange only what you will need. If you swap cash for S$ and then change it back again, you will lose out.
Spending Money in Singapore
In the shops and restaurants as well as market areas, cash is usually preferred. Singapore is actually more expensive than some other Asian countries, so you may well find that you end up spending a little more than you had anticipated, but it is still cheap compared to Western standards.
Historically, there have been a number of problems with counterfeit notes in circulation. These have recently been addressed and the notes you get are likely to be genuine. But as always its far better not to accept a S$10,000 note since you may have difficulty getting rid of it, since some people are still suspicious about the validity of notes. Even $1000 can present problems in terms of getting change, so make sure that you get lots of small notes and then it will be much easier to get rid of them.
Some of the notes are polymer, which are more durable than the paper notes and they will eventually all be made from polymer. These all have a very distinctive feel to them and they also have a clear window in the top corner. These have very rigorous anti counterfeit protection in them, so they are likely to be genuine, even though they look and feel, slightly different to the paper notes.
Carrying Money Safely in Singapore
Singapore is quite a safe country, but petty crime can be a problem, so it is always better to take sensible precautions when it comes to looking after your money. Never carry all of your money in the one spot. Try to make sure that you have at least a few $ in each available pocket and that you don't carry round all the money that you have for the trip: either take some travellers cheques, or make sure that you use a safe in the hotel. It is very easy to lose money when travelling and you don't want to lose all your money, so never carry it all around at once. Accidents happen and all too often people end up losing their cash and that is just too much hassle, so always make sure you have a reserve.
Use a money belt if possible and try not to flash around your money. If you take out a wad of dollars to pay for something small, you are more likely to attract unwanted attention.
Use small notes and beware if people try to give you change which includes 1 cent pieces: they are no longer legal tender.
However, with those safety tips in mind it is possible to have a fantastic trip to Singapore and enjoy the experience of this wonderful country!
Useful Links
http://en.wikipedia.org/wiki/Singapore_dollar