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Asia’s largest FX center, Singapore, embraces free market-style currency interchangeability and majors on market commonality as it enters an MOU with Brunei
The Monetary Authority of Singapore (MAS) and Autoriti Monetari Brunei Darussalam (AMBD) have signed a Memorandum of Understanding (MOU) on bilateral cooperation.
Brunei, a Kingdom located in South East Asia, whilst not well known globally for its participation in financial markets activity, has two attributes which are likely to be instrumental in further developing Asia’s already vast trading community.
The nation is home to a significant Malay-speaking population, which is congruent with Singapore and the rapidly developing Malaysian financial center of Kuala Lumpur. In addition, there are very few restrictions in Brunei on FX trading, and despite its extremely heirarchical nature, the country plays host to some extremely wealthy investors who are prepared to engage in high-volume and high-risk trading activity.
Under the MOU, MAS and AMBD will cooperate on capital market development and capacity building, as well as exchange views and best practices on monetary management and operations, human resources, information technologies, banking supervision and payment and settlement.
The MOU builds on existing pillars of cooperation, including the Currency Interchangeability Agreement between Brunei Darussalam and Singapore and the bilateral dialogue between MAS and AMBD, assisting the nation in being one of the very few Far Eastern nations aside from Hong Kong and Singapore itself whose government realizes the opportunities of trade with global partners and is engaging with Singapore in a way that other nations in the region including China, Vietnam and Indonesia do not, and without the barriers set forth by nations with capital control regulations and draconian bans on FX trading floors.
MAS Managing Director, Mr. Ravi Menon, today made a public statement that “MAS has longstanding and excellent relations with the AMBD. The MOU will lay a firm foundation to further deepen financial ties between our two countries.”
Dato Mohd Rosli Sabtu, Managing Director of AMBD, highlighted the existing Currency Interchangeability Agreement between Brunei Darussalam and Singapore which has benefited both parties. With the MOU, he believes that it will further strengthen the relationship and cooperation between both monetary authorities for the mutual beneficial development of the financial services industry in both countries.