Unlike most central banks, the MAS uses the exchange rate as its main policy tool, given Singapore’s heavy reliance on trade and the openness of its economy. The MAS tightened monetary policy twice last year by allowing the currency to appreciate, encouraged by steady economic growth.
Karnit Flug, Israel’s first woman central bank chief, was named governor of the year for delivering “major reforms” in banking and pushing for the creation of a financial stability committee during her five years at the bank. She succeeded Stanley Fischer in 2013, leading the Bank of Israel to cut its benchmark interest rate to a record 0.1% in March 2015, where it remained until after her departure late last year.
Though her monetary policy was steady, her relations with Prime Minister Benjamin Netanyahu and Finance Minister Moshe Kahlon were stormy. Flug frequently clashed with the government over tax policies and budgetary priorities, as well as foreign currency purchases that curbed the shekel’s strength.
