The Straits Settlements share much of its monetary history with that of Singapore.
Singapore, although inhabited and used as a trading post by a succession of rulers, did not become important until 1819, when Sir Stamford Raffles, a British administrator, established the port of Singapore by treaty with the sultan of Johore. Singapore became part of the Straits Settlements in 1826 (originally Malacca, Penang (including Province Wellesley and the Dindings) and Singapore (including Christmas Island and the Keeling Islands), and joined by Labuan in 1906. The Straits Settlements were ruled by the British East India Company from 1826 until 1858, and by British India from 1858 until April 1, 1867 when it became a crown colony.
The Japanese occupied Singapore from February 12, 1942 until September 12, 1945. Labuan was incorporated into Singapore on 1 January 1907, but it became a separate part of the Straits Settlements on 1 December 1912. On April 1, 1946, Penang and Malacca became part of Malaya, Labuan became part of North Borneo, and Singapore became a separate colony. Singapore became a separate crown colony on April 1, 1946, and became the State of Singapore on June 3, 1959. Singapore was part of Malaysia from September 16, 1963 until August 9, 1965. It became the Republic of Singapore on December 22, 1965.
Spanish Dollars were the principal coin of the realm in Singapore in the 1700s. The East Indies Company introduced its Dollar (XEID) into Singapore around 1788, and in 1858 introduced Indian Rupees; however, the Spanish Dollar and Hong Kong Dollar were preferred, and on April 1, 1867 the Rupee lost its legal tender status. In 1828, British merchants had introduced bronze tokens copied from Sumatran coins and the copper duits of the Dutch East Indies. These tokens were exported to other parts of Malaysia as well. Each token was valued at 1 keping and there were 400 keping to the Straits Dollar. They continued to be issued until the 1850s. Legal tender was issued by India for the Straits Settlements from 1862 to 1870, and by the Straits Settlements itself from 1871 on. The Straits Dollar was equivalent to the Mexican Dollar. British and Mexican Silver Dollars were demonetized on June 25, 1903.
The Board of Commissioners of Currency, Straits Settlements was established on May 1, 1899, and the Straits Settlement Dollar (STSD) became legal tender on July 3, 1903 with 1 STSD equal to 28 Pence Sterling. All government issues of currency and coins were considered to be part of the Straits Settlements Dollar currency area, and were issued by the colonial governments from 1858 until World War II. The Commissioner of Currency for Malaya was formed in 1938 to issue Malayan Dollars (MYAD) because Malaya was allowed to join the currency board and share in the seignorage. Prior to this, Malaya had used Straits Settlement Dollars, but had not been part of the currency board.
During the Japanese occupation of Singapore, the Japanese issued Gumpyo Dollars (MYAG) set at par with the Straits Settlement Dollar. Malayan Dollars were allowed to circulate, but were hoarded. The Straits Settlements were dissolved and the currency board resumed operations on April 1, 1946. The Board of Commissioners, Malaya was the issuing authorities for Malayan Dollars from 1946 until January 1, 1952 when the Board of Commissioners of Currency, Malaya and British Borneo was established as the note-issuing authority.
When Malaysia was established in 1963, the Bank Negara Malaysia took over the issuance of currency and created the Malaysian Ringgit (MYR). Singapore continued to use the Malaysian Ringgit after gaining its independence until May 19, 1967. The Board of Commissioners of Currency took over the issuance of Singapore Dollars (SGD) on May 19, 1967, which replaced the Malaysian Ringgit at par. Singapore used a currency board until 1973 when the Monetary Authority of Singapore replaced the currency board. The Brunei Ringgit remains tied to the Singapore Dollar.
The Interchangeability Agreement of 1967 between Brunei, Malaysia, and Signore provided that effective 12 June 1967, banks and monetary authorities in each country would accept the notes and coins of the other two countries without charging exchange fees. Malaysia ended the agreement between itself and Singapore on 8 May 1973. |
