[Explain] Why Brunei and Singapore Currency are Same ?

The provided sources offer a comprehensive overview of the Brunei Dollar (BND), focusing primarily on its unique Currency Interchangeability Agreement (CIA) with the Singapore Dollar (SGD), which maintains a 1:1 fixed exchange rate and allows the currencies to be used interchangeably as customary tender in both nations.

Historically, this agreement originated in 1967 as a trilateral pact including Malaysia, which subsequently withdrew in 1973 following global monetary instability. While the CIA has contributed to economic stability and facilitates trade and tourism between Brunei and Singapore, it also means the BND is heavily influenced by the SGD’s performance, regardless of Brunei’s separate economic factors, such as its reliance on oil and gas.

Furthermore, the sources discuss Brunei’s ongoing efforts to diversify its oil-reliant economy, which is attracting increased Singaporean investment due to shared cultural ties and the lack of foreign exchange risk afforded by the currency peg. Finally, analysis of Brunei’s monetary policy indicates that its currency management, initially a currency board, has transitioned to the Autoriti Monetari Brunei Darussalam (AMBD), Brunei’s central bank, although historically, its adherence to strict orthodox currency board requirements has fluctuated.

00:00:00 Intro
00:00:35 Skip intro
00:01:05 Brunei and Singapore dollar have same value over 50 years.
00:01:13 The ratio between two currencies is 1:1
00:01:53 before 1967 they used to have single colonial currency.
00:02:07 Singapore, Malaysia, Brunei used to use same currency before.
00:02:22 in 1967, They were independent, but still used same currency.
00:02:29 In 1973, Malaysia withdrawn from the interchangeability agreement.
00:02:51 Why Malaysia exited?
00:03:08 Malaysia focusing on commodity, but Singapore on Financial.
00:03:47 The mutual benefits for Brunei and Singapore.
00:04:15 This agreement was approved by Central Bank in both countries.
00:04:30 In 2017, They were celebrated 50 years of agreement.
00:05:00 What’s different between ‘Legal tender’ and ‘Customary Tender’?
00:06:02 Brunei did not accept 1 Singapore dollar coin.

#BruneiDollar #SingaporeDollar #CurrencyInterchangeabilityAgreement #BruneiSingaporePeg #CustomaryTender
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