The Currency Interchangeability Agreement with Brunei took effect from 12 June 1967. Under the agreement, each country undertakes to accept the currency issued by the other and to exchange them, at par and without charge, into their own currency. In other words, the two currencies are "customary tender" when circulating in the country in which they are not legal tender. Relevant extracts from the agreement are reproduced below:
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| "2 |
(a) |
(i) |
The Brunei Currency Board will accept from banks in Brunei, notes and coins issued by the Board of Commissioners of Currency, Singapore, and will exchange such notes and coins, at par and without charge, into notes and coins issued by the Brunei Currency Board;
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(b) |
(i) |
The Board of Commissioners of Currency, Singapore, will accept from banks in Singapore, notes and coins issued by the Brunei Currency Board, and will exchange such notes and coins, at par and without charge, into notes and coins issued by the Board of Commissioners of Currency, Singapore;
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| 3 |
(b) |
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The Board of Commissioners of Currency, Singapore, will inform all licensed banks in Singapore of the arrangements referred to in paragraph 2 above, and will request all banks to accept, at par and without charge, notes and coins issued by the Brunei Currency Board, and to exchange such notes and coins into notes and coins issued by the Board of Commissioners of Currency, Singapore."
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Footnote:
1. The Board of Commissioners of Currency, Singapore was dissolved on 1 Oct 2002 and its functions, property and liabilities had been transferred to the Monetary Authority of Singapore (MAS) under the Currency (Amendment) Act 2002.
2. The Brunei Currency and Monetary Order 2004 took effect on 1 February 2004. With the introduction of this Currency and Monetary Order, the Brunei Currency Board was renamed as Brunei Currency and Monetary Board (BCMB).
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