The official currency of the country is the Singapore Dollar (currency code SGD), which is loosely tied (not pegged) to the U.S. dollar. Since the US Credit Crisis in 2008, the U.S. dollar has plunged to a low of average 1.5 SGD per 1 USD. The current exchange rate is 1.53 SGD per 1 USD (as of 25 February 2009).

The Singapore currency is abbreviated with the standardized dollar sign - $. It is also abbreviated as S$, thus distinguishing itself from other dollarized currencies. The currency is divided into 100 cents, issued in both coins and notes.

Coins: 1 cent (being decirculated), 5 cent, 10 cent, 20 cent, 50 cent, 1 dollar

Notes: 2 dollars, 5 dollars, 10 dollars, 50 dollars, 100 dollars, 1,000 dollars, 10,000 dollars

In addition to the Singaporean dollar, the Brunei dollar (BND - also known as the ringgit), which is pegged to the SGD, is also considered legal tender in Singapore.

Both cash and non-cash payments are widely used in Singapore. Non-cash payment methods include NETS (payment via direct debit through bankcards), credit card, cash card (stored card value system) and EZ link (used mainly for public transport but can be used at certain places, such as Macdonalds and at convenience stores like 7-11.) Many students double-up the use of their transport cards (EZ Link cards) as cash card facilities to pay for meals and small expenses. Some food court chains (e.g. Kopitiam) offer stored value cards that can be purchased and used exclusively at their chain of food courts at a small discount. Some smaller establishments may discourage the use of credit cards by levying a "fee" – it is up to you whether you want to pay extra for this, or walk out and try another shop. Other establishments will only accept payment via credit card if the amount exceeds a certain amount (usually $20 but occasionally $50). Again, these are the exceptions, rather than the norm.

Expect, however, to pay cash at small vendors / establishments, at markets for fresh produce and at hawker centers for your meals. Credit card payment is acceptable in some taxis, but it is usually more convenient to keep some loose change to pay the taxi driver directly. If you do not have an EZ Link card (public transport card) when you travel by public bus, you are expected to have the exact fare to pay for your journey, as the bus driver does not issue change. Most shops and small eateries that do not accept visa or other non-cash forms of payments will display a prominent sign at the cashier.

According to the Mercer's Cost of Living Survey 2008, the cost of living in Singapore has risen up considerably over the past years, from 32nd in 2003 to 13th in 2008. Singapore is gradually catching up with other "costly" Asian cities such as Tokyo (2nd), Seoul (5th) and Hong Kong (6th). Due to the sharp weakening of the US dollar, the 2008 Mercer rankings saw many changes to the rankings. In particular, American cities, such as New York City, slipped from 15th place in 2007 to 22nd place in 2008. New York City is America's most expensive city. Europeans and Asian cities dominated the top 10 most expensive cities to live in, with Moscow ranked as number one.

Statistics Singapore is the government agency that monitors the Consumer Price Index (CPI) in Singapore, among other key statistics. For more information about Singapore's statistics and cost of living, you may wish to refer to Singapore's yearbook of statistics. The latest yearbook of statistics (2008) can be downloaded in pdf format here.