Brunei Dollar
- Country: Brunei
- Currency: Dollar
- Alias: Brunei dollar
- ISO 4217 CODE: BND/096
- Symbol: B$
Brunei is a Southeast Asian nation with a population of just 372,000. Known formally as Negara Brunei Darussalam – which translates as “Brunei, the Abode of Peace” – the country is situated on the northern coast of the island of Borneo, and has close economic ties to Singapore. For this reason, the Brunei dollar – also known as the Bruneian dollar – is pegged to the Singapore dollar on an equal exchange rate, and the currencies are considered to be interchangeable on a local basis. Brunei has aspirations to become an international offshore banking center, which may in turn help to lessen the country’s reliance on oil and gas to support the value of its dollar.
Background of the Brunei Dollar
Brunei became a British protectorate in 1888, and achieved its independence almost a century later in 1984. The country is currently ruled by the Sultan Hassanal Bolkiah, who is 29th in his family’s lineage.
Oil deposits were first discovered in 1929, radically altering the nation’s economy, and eventually helping Brunei to become the third largest oil producer in Southeast Asia. Significant natural gas deposits were also identified in subsequent years, further solidifying the country’s position as a leading energy provider in the region. Significant prospecting efforts are underway in an attempt to locate new undersea oil deposits.
Brunei does not have a central bank, and its monetary system is managed through an entity known as a Currency Board, which operates under supervision from the Ministry of Finance. Singapore dollars are exchanged at an equal rate for Brunei dollars, and on a local basis can often be used interchangeably. Several Bruneian bank notes are manufactured from polymer, a synthetic, flexible substance that offers greater durability than traditional cotton-based paper, while also thwarting forgery.
The Brunei dollar is divided into 100 cents. Denominations for coins are 1c, 5c, 20c and 50c. Denominations for banknotes are B$1, B$5, B$10, B$50, B$100, B$500, B$1000, and B$10,000.
