The Brunei Dollar (BND) has been pegged to the Singapore Dollar (SGD) since 1967, with an exchange rate of 1 BND to 1 SGD. The decision to peg the currencies was made due to the close economic ties between Brunei and Singapore.
As a small nation with a relatively small economy, Brunei benefits from the stability and strength of the Singaporean economy. By pegging the BND to the SGD, Brunei is able to maintain a stable exchange rate and reduce currency fluctuations, which can help promote economic growth and development.
The peg is maintained through a Currency Interchangeability Agreement (CIA) between Brunei and Singapore, which allows the two currencies to be used interchangeably at par value in both countries. This means that travelers and businesses can easily use either currency in Brunei or Singapore without needing to exchange money.
Overall, the peg between the Brunei Dollar and Singapore Dollar has helped promote economic stability and growth in both countries. It has allowed Brunei to benefit from the strength of the Singaporean economy and maintain a stable exchange rate, while also promoting trade and tourism between the two nations.
