1 Sen – Brunei

In 2008, Brunei Darussalam's currency situation was defined by its long-standing, stable peg to the Singapore Dollar (SGD). Established in 1967, this Currency Interchangeability Agreement created a unique monetary union where the Brunei Dollar (BND) and the SGD are accepted at par and freely interchangeable in both countries. This arrangement provided Brunei with a crucial anchor of monetary stability, effectively outsourcing its monetary policy to the Monetary Authority of Singapore (MAS), which was widely respected for its prudent management. Consequently, Brunei was largely insulated from the speculative currency crises that affected other Southeast Asian nations a decade earlier.

The global financial crisis of 2008 presented a significant external test for this peg. As a small, oil and gas-dependent economy, Brunei faced potential dual pressures: a collapse in global energy prices and regional financial volatility. However, the peg to the SGD proved resilient. The MAS managed the Singapore Dollar against a trade-weighted basket of currencies, allowing for a measured adjustment to global shocks rather than sudden, destabilizing swings. This provided Brunei with imported stability during the turmoil, shielding its domestic prices and financial system from extreme volatility and maintaining strong investor confidence in the currency.

Therefore, the background for Brunei in 2008 is not one of monetary crisis or reform, but of continuity and proven resilience. The year underscored the strategic benefits of its currency peg, which acted as a critical shock absorber. While the nation faced economic challenges from falling hydrocarbon revenues, its currency regime remained a cornerstone of macroeconomic stability, requiring no emergency measures or alterations. The situation highlighted Brunei's reliance on this partnership and the strength derived from linking its currency to that of its major trading and financial partner during a period of global uncertainty.