INTRODUCTION
The Brunei Currency Board (BCB)
was established by the 1967 Currency Act in Chapter 32 of the Laws of Brunei. As
stipulated in Section 9(1) of the Act, it has the sole right to manage and issue currency
notes and coins in Brunei Darussalam. The currency issued by the Board is designated by
Section 13 of the Act to serve as legal tender within the State.
Brunei Darussalam commenced issuance of its
own currency on 12th June 1967. Prior to this date, The Board of Commissioners of Currency
which was reconstituted under the Malaya British Borneo Currency Agreement 1960, was the
sole currency issuing authority in Malaysia, the Republic of Singapore and Brunei
Darussalam, which was then known as the State of Brunei.
Under the provision of the 1960 Currency
Agreement, the effect of the lodgment of notice on 12th December 1964, by the Government
of Malaysia to replace the Board by Bank Negara Malaysia as the sole currency issuing
authority in Malaysia was that the Board would have to relinquish its powers to issue
currency notes not later than 11th December 1966, and coins a year later.
However, on 5th August 1966, the
Participating Governments of Malaysia, Singapore and Brunei, signed an agreement to amend
clause 18(a) of the Currency Agreement to allow the Board to continue to issue currency
for the three countries for a further period of six months until 11th June 1967.
With the Board relinquishing its right to
issue currency in the three countries, Bank Negara Malaysia, the Board of Commissioners of
Currency, Singapore and the Brunei Currency Board replaced the Board on 12th June 1967, as
the sole currency issuing authorities in Malaysia, the Republic of Singapore and the State
of Brunei respectively.
A currency interchangeability agreement was
established between Singapore and Brunei Darussalam, which remains in effect till today
and continues to play a central role in relations between the two countries. This
agreement allows both countries to interchange their currencies at par without either
country running the risk of currency exchange rate fluctuations and thus further
facilitates trade and commerce between the two countries. The individual currencies are
acceptable as customary tender when circulating in the country in which they are not legal
tender.
MISSION & OBJECTIVES
Brunei Currency Board (BCB) was established in 1967 by the Currency
Act. Under Section 9(1) in Chapter 32 of the Laws of Brunei, it has the sole right to
manage and issue currency notes and coins in Brunei Darussalam.
Its main mission is to ensure the integrity
of the currency issue and that the public’s interest is safeguarded. At the same
time, Brunei Currency Board also seeks to provide the highest standard of service to both
the banks and the public.
The
objectives of Brunei Currency Board are:-
- to maintain strict control over the amount of
currency in circulation whereby the external and liquid assets must exceed the statutory
limits of 70% and 30% respectively;
- to ensure that the demand for currency notes and
coins is adequately and sufficiently met by coordinating its activities with the banks;
to assist other departments within
the Ministry of Finance in implementing the nation’s monetary policy;
to ensure the highest degree of
protection for the Board’s assets and custody items held by it;
to ensure prudent management of
the Currency Fund and the Currency Reserve Fund.
MEMBERS OF THE BOARD
In exercise of the powers confered by Section (3) 9a) and (3) (b) of
the Currency Act (Chapter 32), His Majesty The Sultan and Yang Di-Pertuan of Brunei
Darussalam has approved the appointment of the following new members of Brunei Currency
Board :-
CHAIRMAN
His Majesty Sultan Haji Hassanal
Bolkiah Mu'izzaddin
Waddaulah Ibni Al-Marhum Haji Omar Ali
Saifuddien
Sa'adul Khairi Waddin
Minister of Finance
MEMBERS
Dato Paduka Haji Yakub Abu Bakar
Deputy Minister of Finance
Solicitor General
Attorney General's Chambers
Prime Minister's Department Office
Managing Director of Brunei Investment Agency
Minsitry of Finance
ORGANISATION STRUCTURE
