Exchanging Brunei To Singapore Dollars: A Quick Guide

The currencies of neighbouring countries Singapore and Brunei have been interchangeable at par since the 1967 Currency Interchangeability Agreement. This means that the Singapore dollar and the Brunei dollar are of equal value and can be used interchangeably in both countries. As such, there is technically no need to exchange Brunei dollars for Singapore dollars when in Singapore, and vice versa.

Brunei and Singapore dollars are interchangeable at a 1:1 ratio

The currencies of Brunei and Singapore are interchangeable at a 1:1 ratio. This is due to the Currency Interchangeability Agreement, which was established in 1967 to promote monetary cooperation between the two countries. Under this agreement, the Brunei Darussalam Central Bank (BDCB) and Monetary Authority of Singapore (MAS) can exchange the other country's currency notes and coins at par and without charge.

This means that if you are in Singapore, you can use Brunei dollars as they are, without needing to exchange them for Singapore dollars. The same applies if you are in Brunei and have Singapore dollars. Both countries' currencies are accepted as ""customary tender" in the other country, although they are not legal tender there.

It is important to note that only Brunei notes are accepted in Singapore, so it is best to keep any coins in your wallet. However, according to the Monetary Authority of Singapore, coins should also be accepted as part of the agreement.

The two countries have commemorated the anniversary of the Currency Interchangeability Agreement by jointly issuing special edition polymer notes. For example, in 2017, to celebrate the 50th anniversary, both countries issued $50 polymer notes featuring the same design elements, including the Simpur flower of Brunei and Singapore's national flower, the Vanda Miss Joaquim.

Coins and banknotes of the Brunei dollar

The Brunei dollar (B$ or BND) has been the official currency of the Sultanate of Brunei since 1967. It is divided into 100 cents (or sen in Malay). The currency is issued by the Brunei Darussalam Central Bank (BDCB), which also mints the coins and prints the notes.

Coins

The coins of the Brunei dollar are part of the physical form of the country's currency. The first series of coins, introduced in 1967, featured the portrait of the then Sultan, Omar Ali Saifuddin III, on the obverse. The reverse of these coins, and all subsequent series, was designed by Christopher Ironside OBE. The coins issued were 1, 5, 10, 20, and 50 sen.

The second series of coins, issued from 1968 to 1977, featured the portrait of Sultan Hassanal Bolkiah, who acceded to the throne in 1967. The third series of coins were issued from 1977 to 1992, and the fourth series began in 1993 and is still being struck.

Banknotes

The first series of banknotes, introduced on 12 June 1967, featured the portrait of Sultan Omar Ali Saifuddin III. The second series of notes replaced his portrait with that of Sultan Hassanal Bolkiah, the current ruler of Brunei. The third series of notes were the post-independence series, and the fourth series were introduced between 1996 and 2000. Polymer banknotes were introduced in 2004 due to a high number of forgery cases.

Commemorative banknotes have also been issued to mark various occasions, such as the silver jubilee of Sultan Hassanal Bolkiah's accession to the throne in 1992, and the 40th and 50th anniversaries of the Currency Interchangeability Agreement with Singapore in 2007 and 2017, respectively.

The history of the Brunei dollar

The Brunei dollar (B$, ringgit Brunei in Malay) has been the official currency of the Sultanate of Brunei since 1967. It is divided into 100 cents (or sen in Malay) and is issued by the Brunei Darussalam Central Bank.

The history of currency in Brunei dates back to the 10th century, when coins were first used. Due to the country's close ties with China, the first coins were Chinese and called 'Pitis'. Later, local 'Pitis' were introduced, which featured 'Sultanate of Brunei' stamped on the front and the royal umbrella imprinted on the back.

In the 16th to 19th centuries, the Spanish-American silver dollar was widely used for international trade. The 19th-century Straits dollar was derived from this coin. Brunei also issued its own tin coins, denominated in pitis, in 1868, followed by a one-cent coin in 1888, which was one-hundredth of a Straits dollar.

In the early 20th century, as a British protectorate, Brunei used the currencies of its colonial rulers: the Straits dollar from 1906, the Malayan dollar from 1939, and the Malaya and British Borneo dollar from 1953 until 1967.

In 1967, after the formation of Malaysia and the independence of Singapore, Brunei began issuing its own currency, the Brunei dollar, which replaced the Malaya and British Borneo dollar. The same year, under the Currency Interchangeability Agreement, the Brunei dollar became interchangeable with the Singapore dollar at par. This agreement also included the Malaysian ringgit until 1973, when Malaysia withdrew.

The Monetary Authority of Singapore and the Brunei Currency and Monetary Board (now the Autoriti Monetari Brunei Darussalam) continue to maintain the exchangeability of their currencies. According to the agreement, the two currencies are considered customary tender when circulating in the country where they are not legal tender.

To commemorate the 50th anniversary of the Currency Interchangeability Agreement in 2017, both countries issued $50 polymer banknotes featuring their respective leaders, flowers, and landmarks symbolising their friendship and close ties.

The history of the Singapore dollar

The Singapore dollar (SGD) is the official currency of the Republic of Singapore. It is divided into 100 cents and is issued and monitored by the Monetary Authority of Singapore (MAS).

Singapore's history with currency dates back to the 19th century when the first monies used were coins from various parts of the world that traded with the country. The silver dollar was the main currency of trade, while copper coins were used at the bazaar. The East India Company, and later the Colonial Office in London, sanctioned the minting of copper coins for the Straits Settlements' own use.

In 1840, the Singapore branch of the Union Bank of Calcutta issued the first banknote with the words "Singapore" imprinted on it. These banknotes became the main paper currencies used by the island’s trading community for several decades.

In 1897, the Board of Commissioners of Currency, Straits Settlements, was formed, and two years later, it issued the first government note, the Straits Settlements dollar. This became legal tender in the Malay States and British-influenced territories in Borneo.

In 1938, the Board of Commissioners of Currency, Malaya, was formed, and in 1941, the issuance of the new Malayan dollar began. However, the onset of World War II and the Japanese invasion of Malaya disrupted its roll-out. During the Japanese Occupation, "banana notes" or Japanese military notes were introduced.

After the war, the Malayan dollar was reintroduced, and in 1954, Singapore, the Federation of Malaya, Brunei, Sabah, and Sarawak jointly issued the Malaya and British Borneo dollar, which became legal tender in the remaining British colonies in Southeast Asia.

Singapore continued to use this common currency even after gaining independence from Malaysia in 1965. However, the formal monetary union between Malaysia, Singapore, and Brunei ended in 1967, and Singapore established the Board of Commissioners of Currency, Singapore (BCCS), issuing its first coins and notes on April 7, 1967.

The Singapore dollar remained exchangeable at par with the Malaysian ringgit until 1973, and interchangeability with the Brunei dollar is still maintained today.

Over the years, Singapore has had various series of coins and banknotes, including the Marine Series, Floral Series, Iconic Series, Orchid Series, Bird Series, Ship Series, and Portrait Series. The designs reflect the country's national icons, landmarks, and history.

Today, the Singapore dollar is the 10th most-traded currency in the world by value and is recognised globally for its strong financial standing and stable economy.

The Currency Interchangeability Agreement

The agreement was signed by the founding Prime Minister of Singapore, Lee Kuan Yew, and the Sultan of Brunei. It was established to minimise transaction costs and facilitate trade and investment between the two countries. The agreement originally included Malaysia as well, but the country pulled out in 1973 due to differing economic policies and goals.

Under the agreement, the Brunei Darussalam Central Bank (BDCB) and Monetary Authority of Singapore (MAS) accept each other's currency notes and coins from banks and exchange them into their own currency at par and without charge. Banks in both countries also accept deposits of the other country's currency from the public and businesses at par and without charge.

The agreement reflects the strong bilateral relationship between Brunei and Singapore and has stood the test of time, remaining intact through financial crises and structural changes to both economies. To commemorate the 40th and 50th anniversaries of the agreement, Brunei and Singapore jointly issued commemorative $20 and $50 polymer notes, respectively.

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