On 14 August 2025, the Monetary Authority of Singapore (MAS) and the Brunei Darussalam Central Bank (BDCB) announced their partnership at the fifth BDCB-MAS Bilateral Roundtable in Brunei Darussalam. The meeting reinforced cooperation between the two central banks in financial stability, payments connectivity, and cross-border liquidity management. Both regulators announced plans to commemorate the 60th Anniversary of the Currency Interchangeability Agreement in 2027. A Memorandum of Understanding was signed to establish a reciprocal cross-border collateral arrangement, enabling financial institutions in both jurisdictions to access a wider pool of eligible collateral. This provides greater flexibility in liquidity provisioning and strengthens resilience in regional markets. The roundtable confirmed the long-standing relationship between MAS and BDCB as an important framework for navigating regional economic developments.
Definitions and Legal Framework
Currency Interchangeability Agreement (CIA): A bilateral framework established in 1967 allowing the Brunei dollar and Singapore dollar to be accepted interchangeably at par value in both jurisdictions.
Reciprocal Cross-Border Collateral Arrangement (CBCA): A mechanism under which MAS and BDCB will recognise and accept a wider range of collateral across their liquidity facilities, thereby supporting financial institutions operating in both markets.
MoU on Cross-Border Collateral Arrangements
The MoU signed between MAS Managing Director Chia Der Jiun and BDCB Managing Director Hajah Rashidah binti Haji Sabtu formalises the reciprocal collateral framework. The arrangement allows banks and financial institutions to pledge assets across both jurisdictions for liquidity access, enhancing operational efficiency and financial stability.
Regional and Global Relevance
The cooperation highlights Singapore’s and Brunei’s commitment to strengthening monetary frameworks in the ASEAN region. For crypto entities and virtual asset service providers, this development signals continued regulatory emphasis on cross-border liquidity resilience and collateral transparency—critical principles also embedded in international financial regulations such as the United States Securities Act of 1933 and the European Union Markets in Financial Instruments Directive II.
Both regulators confirmed their intent to expand collaboration in payments connectivity and to mark the 60th Anniversary of the CIA in 2027. The reaffirmation of this central bank partnership underscores the strategic importance of cross-border financial infrastructure in an evolving economic and digital asset landscape.
