Singapore Dollar Swap Offer Rate (SOR) is an implied interest rate, determined by examining the
spot and
forward foreign exchange rate
In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of ...
between the
US dollar (USD) and
Singapore dollar (SGD) and the appropriate US dollar interest rate for the term of the forward. It reflects the cost of borrowing SGD synthetically by borrowing USD and subsequently "swapping" to SGD by using an
FX Swap. It is an alternative to
Singapore Interbank Offered Rate (SIBOR) which is a measure of the interbank money market rates.
As of December 2018, SOR is measured and published periods of overnight, 1 month, 3 month, and 6 month.
Like SIBOR, SOR is set by the
Association of Banks in Singapore, and is also publicly available.
Below are the rates for 5 December 2018 published b
ABS Co.
Residential property loans in Singapore are no longer pegged to SOR as banks have withdrawn them in 2017. SOR-pegged mortgages in recent years are not as popular as
SIBOR-linked mortgages or Fixed Deposit Rates linked mortgages due to its
volatility. They are still available in the wholesale and commercial lending space.
References
External links
Association of Banks in Singapore (ABS)
Mortgage
Mortgage industry of Singapore
Reference rates
Currencies of Singapore
Foreign exchange market
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