The aim of delivering medium-term price stability is the stated objective of the Monetary Authority of Singapore. To this end, the central bank adopted an unusual exchange rate–based monetary policy framework that has served the economy well over the past decades. However, the shift from the phase of catch-up growth to a mature economy raises the question of whether the current monetary policy framework needs reformulation. Moreover, as global financial integration deepens, surges in cross-border capital flows impact Singapore’s exchange rate and asset prices, which has implications for economic dynamism and inclusion. Since a large and persistent deviation of the more recent exchange rate path from its equilibrium level may result in a possible fundamental correction in the future, this chapter attempts to gauge, approximately, whether the Singapore dollar is suffering from any serious misalignment. We estimate a behavioural equilibrium exchange rate model which suggests that the value of the Singapore dollar has, in general, reflected Singapore’s medium-term economic fundamentals since the 1990s. While there seems no urgent need for reformulation, monetary policy in Singapore has to be supported by macroprudential policy that mitigates risks to the financial stability of Singapore as well as other policies that help maintain confidence in the Singapore economy.