SINGAPORE - The official foreign reserves (OFR) gained $8.5 billion for FY2017/18, the Monetary Authority of Singapore said in its latest annual report released on Wednesday (July 4).

The gains in OFR comprise investment gains of $22.3 billion and a loss from currency translation effects of $13.8 billion due mainly to the strengthening of the Singapore dollar against the US dollar and Japanese yen, the MAS said. The investment gains over the last 10 financial years averaged $12.1 billion per annum.

The MAS held $376.5 billion of OFR as at March 31, 2018. The OFR is invested in a well diversified portfolio for good long-term returns and resilience across market conditions.

Investment grade bonds in the advanced economies form the largest allocation in the portfolio. About three-quarters of the portfolio are denominated in US dollar, euro, yen and sterling, with investments in US dollar forming the bulk.