Country Report Brunei March 2011

Outlook for 2011-12: Exchange rates

The Brunei dollar is fixed to the Singapore dollar at parity. In general, the currency peg has served Brunei well, linking its economy to the well-managed economy of Singapore and preventing a surge in the value of the Brunei dollar as a consequence of large current-account surpluses. The government has indicated that no change to the currency peg is planned. The Brunei dollar averaged Br$1.36:US$1 in 2010, and is expected to firm to Br$1.32:US$1 in 2011 and Br$1.30:US$1 in 2012.

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