DEFINITION of 'BND (Brunei Dollar)'
The currency abbreviation, or currency symbol, for the Brunei dollar (BND), the currency for Brunei, which also acceptable tender in Singapore. The Brunei dollar is made up of 100 sen (also known as cents in English) and is often presented with the symbol B$. The dollar is pegged to the Singapore dollar 1:1 and is called the "ringgit Brunei" in the Malay language.
BREAKING DOWN 'BND (Brunei Dollar)'
The Brunei dollar was introduced by the Sultanate of Brunei in 1967. Before 1967, the Malaya and British Borneo dollar was used. According to the Currency Interchangeability Agreement, the Brunei dollar is accepted as customary tender in Singapore. Singapore is one of Brunei's largest trading partners, and having a peg of 1:1 and an interchangeable currency pair greatly reduces exchange rate risk.