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Malaysia central bank sharia advisers forbid forward forex fee

Posted on 27 August 2010

Megat Hizaini HassanFrom Reuters: The Malaysian central bank’s sharia advisers have outlawed the payment of a fee to support a pledge made in Islamic forward foreign currency transactions, saying such charges contravene the religion.
Islamic banks tend to levy a payment when a promise or “waad” is made to enter into a forward foreign currency hedging contract to reflect the parties’ commitment to the transaction……………………………………….Full Article: Source

 
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