The Central Bank of Brunei Darussalam, referred to as Brunei Darussalam Central Bank (English: Brunei Darussalam Central Bank, referred to as BDCB), changed to its current name on June 26, 2021, is a government entity operating independently in Brunei Darussalam. It was formed by the merger of four departments under the previous Ministry of Finance: the Financial Institution Group (FID), the Research and International Bureau (RID), the Brunei International Financial Centre (BIFC), and the Brunei Monetary and Financial Commission (BCMB). As the financial authority of Brunei, the Central Bank of Brunei is mainly responsible for formulating and implementing monetary policy, managing and supervising the Financial Institution Group, and managing monetary affairs.

History

1960 Malaysia, Singapore and Brunei jointly signed the Malaya British Borneo Currency Agreement 1960 (Malaya British Borneo Currency Agreement 1960), establishing the Board of Commissioners of Currency as the common currency issuer of the three countries. The Currency Agreement stipulated that the committee could issue a common currency until December 11, 1966. By August 5, 1966, the three governments had agreed to amend Article 18 (a) of the original 1960 Currency Agreement, providing that the time for the Committee of Currency Commissioners to issue the common currency of the three countries would be extended for half a year from now, that is, until June 11, 1967. So on June 12, 1967, the Currency Commissioners Committee, the original currency issuing institution of the three countries, was officially dissolved. On the same day, the Sultan of Brunei promulgated the Currency Act 1967, established the Brunei Currency Board (BCB) and issued the first version of the Brunei Dollar. Since then, it has replaced the original Currency Commissioners Committee and become the only currency issuing authority in Brunei. At the same time, in order to promote the economic and trade development of both sides, Singapore and Brunei signed the Currency Interchangeability Agreement, which stipulated that the Singapore dollar and the Brunei dollar should be kept in the equivalent exchange and can be freely circulated in each other's countries. In 1970, the Brunei Currency Board (BCB) issued the Brunei Dollar commemorative coin for the first time. The second version of the Brunei dollar was issued in 1972, followed by the third version in 1989, followed by the first plastic banknotes in 1996. On 1 January 2004, the Sultan of Brunei issued the Currency and Monetary Order to replace the original Currency Act 1967. On 1 February of the same year, the Brunei Monetary Board (BCB) was renamed the Brunei Monetary and Financial Board (BCMB). Since then, the functions of the central bank in Brunei have been shared by the Ministry of Finance through its subordinate Brunei Monetary and Financial Board (BCMB) and the Financial Institutions Group (FID). On June 27, 2007, Singapore and Brunei jointly issued a commemorative plastic banknote with the theme of the anniversary to celebrate the 40th anniversary of the signing of the Currency Equivalence Swap Agreement. On July 15, 2010, the Sultan of Brunei issued the Autoriti Monetari Brunei Darussalam Order to restructure and upgrade the structure and functions of the Brunei Monetary and Financial Commission. The following year, on January 1, 2011, the Brunei Monetary Authority (AMBD) was officially established, becoming an independent and supreme authority in charge of the country's monetary and financial affairs. It began to be responsible for the implementation of the national monetary policy and the supervision of the operation of the Financial Institution Group. The currency peg system with Singapore remained. On August 14, 2013, the Brunei Monetary Authority issued short-term Islamic bonds worth 100 million Brunei dollars. On February 17, 2014, the China Securities Regulatory Commission and the Brunei Monetary Authority signed a memorandum of understanding on securities and futures management cooperation between the two countries, marking that Brunei Financial Institution Group can apply to the China Securities Supervision Commission for Qualified Foreign Institutional Investor qualification and enter the Chinese market for investment. On June 26, 2021, the Brunei Monetary Authority officially changed its name to the Central Bank of Brunei.

Objectives and Functions

Objectives

The main objectives of the Central Bank of Brunei are four points

• to maintain and maintain domestic price stability;
• to ensure the stability of the financial system by formulating financial regulations and prudential supervision standards;
• to establish an efficient payment system and supervise its operation;
• to foster and develop a sound and progressive financial services industry;

Functions

The functions of the Central Bank of Brunei are:

• 1. Printing Brunei dollar banknotes and minting Brunei dollar coins;
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  • 2. Manage the issuance, circulation and recycling of the Brunei dollar in accordance with regulations;
  • 3. Maintain and supervise foreign exchange reserves in order to maintain the international value of the Brunei dollar and an adequate backup of money supply;
  • 4. Ensure that the circulation of funds is maintained at an appropriate level by monitoring changes in macroeconomic indicators to promote currency stability;
  • 5. Issue Islamic bonds on behalf of the Ministry of Finance;
  • 6. Maintain minimum domestic bank deposit reserves at the request of the Ministry of Finance;
  • 7. Maintain information exchange and cooperation with international organizations