Including exchange rate effects, in Sing Dollar terms, MAS recorded a net loss of $ billion. In short, we made good investment gains, but when measured in Sing Dollars, these gains were more than offset by the strength of the currency. If we had reported our P/L in an international currency it would show a healthy profit. The effect of a strong Sing Dollar on our reserves should be seen in a broader context. First, the international purchasing power of our reserves is unaffected by strength of Sing Dollar. MAS’ foreign reserves serve two primary purposes in times of crisis: they finance our imports from the rest of the world, and safeguard the value of our currency. On both fronts, it is foreign currency value of the reserves that matters. Second, the strength of the Sing Dollar has safeguarded our domestic purchasing power. It has helped to moderate the increase in Singaporeans’ cost of living. For instance, while global oil prices rose by 20% in FY2010, domestic prices of oil-related items increased by only 10%. Or take another example of food prices. During FY2010, the rate of increase in food prices in Singapore was about half of that in our major trading partners, which includes both advanced and emerging economies. Last, I will elaborate on our efforts to maintain high regulatory standards. MAS is well-placed to meet higher global standards emerging from international regulatory reforms following the crisis.
SEPA and TARGET can be clearly seen as two examples of how the euro has catalysed European financial integration with the Eurosystem, the central bank of the euro area, as an agent. The euro was also instrumental in improving our ability to fight economic and financial crises. As always it required resolute and immediate action, and sometimes an adaptation of the initial governance of the EMU, with the SSM standing out here as the best example. Moreover, the euro is not simply an elite project as is frequently claimed. It is also a popular success. According to the latest standard Eurobarometer poll conducted this summer, support for the euro increased in the first half of 2022 in both the euro area and France [up 3 pp in the euro area and5 pp in France]. Support for the euro is now at its highest level ever in the euro area, at 80%, 74% in France. These examples illustrate how the resilience of the euro area to shocks was improved, sometimes by a deeper integration and sometimes by an ability to adapt the governance to new circumstances. However, the current environment and the macroeconomic outlook clearly bring new geopolitical, social, economic and financial challenges. From the Eurosystem and its monetary policy perspective, the main risk to fight in order to ensure price stability in the medium run is no longer that of "too low inflation for too long", but that of "too high for  1/4  BIS - Central bankers' speeches  too long" inflation.