17.08.2010 - Muwa'adah valid for forward forex contracts - scholar

From Arabianbusiness.com: Muwa'adah is a permissible basis for forward currency transactions, a respected sharia adviser said on Monday, challenging a widely held view which has limited the range of Islamic hedging tools. The use of muwa'adah or mutual promise in forward foreign exchange contracts has drawn strong criticism from a broad section of the industry who say it can lead to riba or usury which is forbidden by Islam..............................................Full Article: Source

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