The Autoriti Monetari Brunei Darussalam (AMBD) along with the banks in Brunei signed the AMBD Islamic Bills (AMBD I-Bills), an initiative aimed to support the effective and efficient liquidity for financial institutions across the sultanate.
A signing ceremony was held on Tuesday at the Theatre Hall of the Ministry of Finance and Economy (MOFE).
Signing on behalf of AMBD was Managing Director, Hjh Rokiah Hj Badar, while signing on behalf of the banks were senior representatives of their respective establishments.
The introduction of the AMBD I-Bills, according to Hj Rokiah, represent one of the central bank’s efforts in creating conditions that are conducive to the development of better and more efficient money market instruments in Brunei Darussalam.
The programme is also the third and final deliverable under AMBD’s Domestic Money Market Project which was established in 2017, she added during opening remarks.
This was followed by the establishment of an averaging mechanism to the Minimum Cash Balance (MCB), and the rolling out of Syariah-compliant and conventional overnight standing facilities.
The AMBD managing director then explained that the inaugural AMBD I-Bills will be based on the Syariah concept of Wakalah bil Ujrah which is the first of its kind in the country, and the first issuance of it will be on October 22.
The design and operations on the AMBD I-Bills Programme are strictly consistent with the Currency Board principles as Brunei Darussalam remains fully committed to the Currency Board Arrangement, and the Currency Interchangeability Agreement with Singapore.
Hjh Rokiah continued that the AMBD I-Bills will have a tenor of two weeks, with issuance available to license banks in the country and the rates offered will be part of the benchmark yield curve.
With this it is hoped that the new programme will be able to stimulate the development of other financial instruments in the country, particularly Syariah-compliant instruments.
The Guest of Honour for the ceremony was Yang Berhormat Pehin Orang Kaya Seri Kerna Dato Seri Setia Dr Hj Awang Abu Bakar Hj Apong, Minister of Home Affairs as Deputy Chairman of AMBD’s Board of Directors.
Also in attendance were Yang Berhormat Dato Seri Setia Hj Abdul Mokti Hj Mohd Daud, Minister at The Prime Minister’s Office, Yang Berhormat Dato Seri Setia Dr Hj Mohd Amin Liew Abdullah, Minister at the Prime Minister’s Office and Minister of Finance and Economy II along with other AMBD Board of Directors; members of the Syariah Financial Supervisory Board; and senior officers from MOFE, AMBD and financial institutions.
For more information on the AMBD I-Bills, members of the public may view the technical notes on the AMBD website at www.ambd.gov.bn
The Bruneian | BANDAR SERI BEGAWAN