Autoriti Monetari Brunei Darussalam (AMBD) have found that there have been photos circulating through the social media with regards to the difference in the exchange rates for the Singapore Dollar (SGD) and the Brunei Dollar (BND).

In a press release, AMBD would like to share that The Currency Interchangeability Agreement (CIA) was signed in 1967 between Brunei Darussalam and the Republic of Singapore. Under the CIA, each country undertakes to accept the currency issued by the other country at par or 1:1. Brunei currency is circulated and accepted as customary tender to pay for goods and services in Singapore, where Singapore currency is the legal tender.

The monetary authorities and commercial banks in Brunei Darussalam and Singapore do accept and exchange, the SGD and BND respectively, at par and without any charge into their own currency. Exceptions are only made in terms of heavily damaged physical currency.

All other businesses, such as money changers, taxi drivers or hawkers, are not obliged to accept the customary tender. For example, in Brunei Darussalam the SGD 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.

In the case of money changers in the Republic of Singapore, they 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 USD1= SGD1.34 and USD1= BND1.36 and would further quote BND= SGDO.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.

To obtain BND 1=SGD 1 exchange rate without charge, the general public can contact their local banks to exchange BND for SGD, or SGD to BND. For banks who are unable to provide this exchange rate at par, the general public can inform the Monetary Authority of Singapore (MAS) and AMBD.

For further information or any enquiries the public can contact AMBD at 2382186 or email [email protected]

Source:
@BRUDIRECT.COM

by BruDirect.com

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