Lesson 3 of 5

Steering through the exchange rate: Singapore's band and Brunei's currency board

Singapore does not set a policy interest rate. Its central bank lets a trade-weighted value of the Singapore dollar move inside a band and changes the band's slope, level and width. Brunei goes further: its dollar is pegged to the Singapore dollar at par and fully backed by foreign reserves. Hong Kong and Denmark use comparable fixed arrangements against a single currency.

Published 16 October 2026