Wah, I didn’t know this fact. Singapore Dollars can be used in Brunei while Brunei Dollars can be used in Singapore. They carry the same value, meaning a Sing dollar is equal to a Brunei dollar in value, vice versa…

I have no idea that both currencies are legal tender in both countries. And this has been going on for decades, from June 12, 1967 to be exact! 40 years!

I only came to know about this when I was reading Thursday’s edition of The Straits Times (Singapore) this morning. According to the cover story, the Currency Interchangeability Agreement came into light when both Singapore and Brunei signed the pact.

Previously, before 1967, Brunei, Singapore and Malaysia were in a monetary union with a common currency. After the union, each country issued its own currency. For the pact to have lasted 40 years, it really had stood the test of time.

To commemorate the event, both countries launch new S$20 bills….

S$20 and B$20 bill

Reading this article brings my mind to one thought. Because Singapore and Brunei signed this pact, both their currencies stand on equal ground….What if, Malaysia had signed this pact too and all three countries’ currencies are interchangeable and of the same value. I’m pretty sure 40 years back, the Malaysian Ringgit is on equal value with the Singapore and Brunei dollar.

Now it’s in the range of 2.2 Ringgit to 1 dollar…..Malaysia’s Ringgit had devalued (or is it because of less stronger economic growth as compared to both countries)?

Technorati Tags: , , ,