Singapore has moved to loosen its monetary policy for the first time in three-and-a-half years to help offset slowing economic momentum due to prolonged U.S.-China trade tensions.

As a small, heavily trade-dependent economy, the country has been heavily exposed to the tariff battle between two of its largest trading partners. Exports have been falling at a double-digit pace from last year’s levels.

The Monetary Authority of Singapore, the central bank, said in its semiannual policy statement Monday that it would slightly decrease the slope of the Singapore dollar’s exchange policy band, a move to guide a weaker appreciation of the local currency.

The nation’s monetary policy is based on its exchange rate whereby the Singapore dollar is managed against a basket of currencies representing the country’s major trading partners.

With this move, Singapore follows regional peers such as Indonesia, the Philippines and India, all of which have eased monetary policy by cutting interest rates in recent months.

Singapore’s adjustment comes as trade-related industries stagnate under pressure from the U.S.-China standoff, though economists say domestically focused sectors have held up better.

The city-state’s estimated gross domestic product for the July-September period, also released on Monday, grew 0.1% from a year ago, unchanged from the expansion of 0.1% posted in the second quarter.

Singapore last eased monetary policy in April 2016 when it stopped seeking currency appreciation as economic growth slowed.

Last year, Singapore tightened monetary policy twice, citing factors including upward pressure on core inflation. But as U.S.-China trade tensions started to bite in late 2018 and clouded the global economic outlook, Singapore has held policy steady this year until now.

Singapore’s exports were equivalent to 176% of GDP in 2018, according to the World Bank. A slump in key manufacturing sectors such as semiconductors has weighed heavily on the economy. The government in August downgraded its annual growth projection to a range of 0% to 1% from a previous estimate of 1.5% to 2.5%.

The weak economy could also affect the timing of Singapore’s next election, which must be held by April 2021. Last month, the government formed a committee to draw up boundaries for electoral wards, a first preparatory step in the election process.

Singapore’s core inflation rate in August was 0.8%, lower than 2018’s annual figure of 1.7%. This has helped give room for the central bank to ease policy.

Many economists had expected Monday’s easing. Mohamed Faiz Nagutha, ASEAN economist at Bank of America Merrill Lynch, forecast two weeks ago that the MAS would move to loosen monetary policy over two policy meetings.

“The broader growth outlook is likely weak as any rebound is likely to be short-lived, with growth momentum remaining sub-trend into next year,” Nagutha said.

U.S. Federal Reserve rate cuts have created space for Asian central banks to cut their rates.

In Southeast Asia, Indonesia and the Philippines have each cut policy rates three times this year while Thailand and Malaysia did once. South Korea is expected to cut rates on Wednesday.