Forty years of currency interchangeability feted
 

The Brunei Times

By Hadi DP Mahmud and Asri Razak

Jerudong

12.06.07

Commemorative currency note to be launched at the end of the month

Today marks the 40th anniversary of the Currency Interchangeability Agreement between Brunei and Singapore. A commemorative currency note is due to be launched at the end of the month, further signifying the strength and confidence of Brunei-Singapore ties.

Reflecting on the positive trends of the two economies, Singaporean Senior Minister Goh Chok Tong, who was in the country to attend the Royal Wedding banquet, noted that the "vibrancy" of the economies also depends on maintaining a healthy outlook to both economies.

Speaking to the press following an audience with His Majesty, the Sultan and Yang Di-Pertuan of Brunei Darussalam, Goh said: "The vibrancy of the economy depends not just on the currency note, it also depends on what else we do. Also Singapore is a very vibrant economy... and Brunei's economy also has to be vibrant otherwise there'll be a pull between the value of the two currencies even though you have interchangeable currency," said the senior minister.

In response to what the implications will be for Brunei as it seeks to gradually detach its economy from its oil resources, which is really the only way Brunei can maintain the agreement, Goh said, "Both economies are growing, at this stage of course the Singapore economy is doing a bit better in terms of economic growth than Bruneian economy. But Brunei has oil, and the oil price is very good so the economy is also doing very well."

Noting the importance of the occasion, Goh said that Singapore Prime Minister Lee Hsien Loong would be visiting the sultanate at the end of the month to launch the commemorative currency note along with His Majesty.

"This interchangeable currency is very important for both Brunei and Singapore. It shows that our economies are bonded, thats why you can have one currency, in a sense," he said.

Goh admitted that though that some of the retailers in Singapore are still refusing to accept Bruneian currency, discerning the need to educate Singaporean retailers "again and again" on the matter.

"They (Singaporean retailers) are not used to seeing Bruneian currency. If Bruneians spend a lot of money in Singapore, and you have millions of Brunei dollars floating around, there'll be no problem. So the retailers see the currency, they are not familiar with it.

So from time to time, we have to tell the retailers that there is an interchangeable agreement with Brunei and the currency must be accepted," he clarified.

Goh said that he wouldn't be too worried about it, as Singapore will be using the occasion to reach out to its retailers.

"... The launching of the new currency note on the 40th anniversary is very important. It is a way to tell Singaporeans and also Bruneians that we have these interchangeable currencies... If the currency is not accepted just tell the retailer and explain to them that there is no problem, that they are acceptable to banks," said Goh.

Speaking on the new commemorative currency note, Goh maintained that the notes will be circulated although it will be a limited issue.

"I think it will become a collectors' item. Because it's the first time we are doing this in 40 years, I think collectors would not circulate them. But it is meant for circulation and can be used like any currency note," he said. Goh described the new currency note to be "very attractive".

"On one side you have scenes of Brunei and Singapore. On the other side, each country has its own official face of the currency."

The currency interchangeability agreement between the two countries took effect on June 12, 1967. It remains in effect till today and continues to play a central role in bilateral relations.

The agreements allow both countries to interchange their currencies at par without either country running the risk of currency exchange rate fluctuations and further facilitates trade and commerce between the two countries.