Brunei Darussalam’s inflation has been low and stable averaging around 1.2 per cent over the last 40 years.
This was revealed by Autoriti Monetari Brunei Darussalam (AMBD) Deputy Managing Director (Monetary Operations/Development and International) Hajah Noorrafidah binti Haji Sulaiman in a presentation during the AMBD 10th Anniversary Seminar at The Rizqun International Hotel yesterday.
Themed ‘Maintaining Efficient Payment Systems and Monetary Stability’, the Deputy Managing Director focussed on two of AMBD’s objectives – achieving and maintaining domestic price stability; and establishing efficient payment systems and overseeing them.
Hajah Noorrafidah said monetary stability relies on two principles – price stability or stable inflation and confidence in the currency by both the country’s residence and for international transactions.
She said cash are separated into fit and unfit notes in banks. Unfit notes will be returned to AMBD while fit notes will be re-circulated in the cash cycle.
She also covered inter-banking system regulating inter-bank payment using electronic transfers.
The Deputy Managing Director ended the presentation with the subject of Currency Board Agreement that sees Brunei dollar pegged to the Singapore dollar.
“In Brunei, we have a legislation that requires us to back up our currencies with foreign reserves. Alhamdulillah, our currency back up is above the 100 per cent threshold,” she said.
Hajah Noorrafidah said monetary authorities and banks of both countries must accept the currencies of both countries through the Currency Inter-changeability Agreement.
“The Currency Board Agreement contributes to Brunei’s macro account stability and price stability which is recognised by the International Monetary Fund (IMF).”
The presentation was followed by a panel discussion with AMBD Executive Director (Currency Management) Pengiran Maslina binti Pengiran Haji Mahmud, AMBD Executive Director (Monetary Management) Hajah Nurhuaida Fakhriah binti Haji Damit, AMBD Head of Payment and Settlement System Lim Shaw Fhen and AMBD Senior Manager (Economics, Research and Statistics) Jason Lih Cheng Kok.
AMBD Executive Director (Corporate Planning and Development, Macroprudential and Financial Surveillance) Dayangku Seri Joedianna binti Pengiran Haji Mohammed was the moderator.