Dollar interchangeability with S’pore reaffirmed
BANDAR SERI BEGAWAN
THE monetary authorities and commercial banks in Brunei and Singapore are authorised to accept and exchange the Singapore Dollar (SGD) and the Brunei Dollar (BND) at a one-to-one exchange rate, the Autoriti Monetari Brunei Darussalam (AMBD) said yesterday.
In response to photos circulating through the social media regarding the difference in the exchange rates for both currencies, the AMBD in a statement reaffirmed that each country undertakes to accept the currency issued by the other country at par and without any charge into their own currency.
This is in line with the Currency Interchangeability Agreement (CIA) between Brunei and Singapore that was signed in 1967.
The Brunei currency is circulated and accepted as customary tender to pay for goods and services in Singapore, where Singapore currency is the legal tender.
However, all other businesses such as money changers, taxi drivers or hawkers are not obliged to accept the customary tender, the AMBD said.
“For example, in Brunei the S$1 coin is not widely accepted. Conversely, in Singapore some retailers may be happy to accept Brunei Dollar notes but not coins. This is entirely the right and choice of the business owners.”
The AMBD said that the money changers in Singapore may choose to impose a transaction fee or set different exchange rates for SGD and BND purely out of commercial decisions.
“For example, they may quote two exchange rates, US$1=S$1.34 and US$1=B$1.36 and would further quote B$1=S$0.9251. This is not against the CIA as they, normally, have to take into account factors such as transactions costs, cost of holding onto Brunei Dollars due to the relatively higher demand of Singapore Dollars across the globe compared to Brunei Dollars.”
The AMBD advised the public that to obtain B$1=S$1 exchange rate without charge, the general public can contact their local banks to exchange BND for SGD, or SGD to BND.
For banks that are unable to provide this exchange rate at par, the general public can inform the Monetary Authority of Singapore (MAS) and the AMBD.
The Brunei Times