FOREX, ISLAM and MALAYSIA
No forex trading for Muslims
KOTA BARU: The National Fatwa Council has ruled that foreign exchange trading (forex trading) is forbidden or haram for Muslims.
Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading was against Islamic law.
“A study by the committee found that such trading involves currency speculation, which contradicts Islamic law.
“For that reason, the National Fatwa Council has decided that it is haram for Muslims to participate in such trading,” he said after chairing the Council’s 98th conference here yesterday.
Abdul Shukor said Muslims should not participate in forex trading as there were many doubts about it, given that it involved individuals using the Internet with uncertain outcomes.
“Other forms of trading in foreign currencies, such as trading by money changers or between banks, are permissible as they do not involve currency speculation or uncertain outcomes,” he said.http://www.blogger.com/img/blank.gif
He said the meeting also decided that it was permissible for Muslims to invest or save under the Premium Saving Certificate scheme by Bank Simpanan Nasional http://www.blogger.com/img/blank.gif(BSN).
He said the committee was satisfied with the briefing given by the Bank Negara’s syariah panel regarding the scheme’s implementation.
He added that the committee also agreed to formulate guidelines on Muslim couples having their wedding ceremony in a mosque to allay doubts that the ceremony purportedly follows Christian practices. — Bernama
Link @the star
Malaysia relaxes forex rules to boost mart
Link of source
BANK Negara Malaysia (BNM) further liberalised its foreign exchange rules yesterday, in a move to develop the domestic financial markets.
It said these measures, which will take effect from today, are in line with the Financial Sector Masterplan, which was launched last month.
Licensed onshore banks, whether commercial, investment or Islamic, are now permitted to trade foreign currency against another foreign currency with a resident for any purpose.
This means that residents will now be allowed to buy and sell any foreign currency (except for new Israeli shekel) against another foreign currency instead of being restricted to buying and selling foreign currency against the ringgit.
They can fund the foreign currency trading activities from their own existing foreign currency funds, conversion of ringgit on spot basis and through permitted foreign currency credit facilities.
Money changers and approved remittance service operators are allowed to buy and sell foreign currency with residents and non-residents on cash basis.
BNM said onshore banks will also be allowed to offer ringgit-denominated interest rate derivatives which include interest rate futures, options and swaps to a non-bank non-resident.
The central bank has also allowed residents flexibility to convert their existing ringgit or foreign currency debt obligation into a debt obligation of another foreign currency.
Currently residents with domestic ringgit credit facilities are allowed to convert ringgit up to RM1 million per calender year for individuals and up to RM50 million on a corporate group basis.
BNM also said that the conversion through swap of an existing ringgit debt obligation should not lead to actual delivery of foreign currency at the inception of the transaction.
For example, a resident exporter due to receive foreign currency export proceeds periodically and has an existing ringgit loan from a licensed onshore bank can now have a swap transaction to convert the ringgit debt obligation into foreign currency obligation to match the foreign currency export receivables.
It added that a resident can also convert through swap his existing foreign currency debt obligation with a licensed onshore bank into another foreign currency debt obligation with a non-resident bank or vice versa.
All conversions are subject to prevailing rules on foreign currency credit facilities.
Read more: Malaysia relaxes forex rules to boost mart http://www.btimes.com.my/Current_News/BTIMES/articles/rup30bb/Article/#ixzz1mbXnodgL
KOTA BARU: The National Fatwa Council has ruled that foreign exchange trading (forex trading) is forbidden or haram for Muslims.
Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading was against Islamic law.
“A study by the committee found that such trading involves currency speculation, which contradicts Islamic law.
“For that reason, the National Fatwa Council has decided that it is haram for Muslims to participate in such trading,” he said after chairing the Council’s 98th conference here yesterday.
Abdul Shukor said Muslims should not participate in forex trading as there were many doubts about it, given that it involved individuals using the Internet with uncertain outcomes.
“Other forms of trading in foreign currencies, such as trading by money changers or between banks, are permissible as they do not involve currency speculation or uncertain outcomes,” he said.http://www.blogger.com/img/blank.gif
He said the meeting also decided that it was permissible for Muslims to invest or save under the Premium Saving Certificate scheme by Bank Simpanan Nasional http://www.blogger.com/img/blank.gif(BSN).
He said the committee was satisfied with the briefing given by the Bank Negara’s syariah panel regarding the scheme’s implementation.
He added that the committee also agreed to formulate guidelines on Muslim couples having their wedding ceremony in a mosque to allay doubts that the ceremony purportedly follows Christian practices. — Bernama
Link @the star
Malaysia relaxes forex rules to boost mart
Link of source
BANK Negara Malaysia (BNM) further liberalised its foreign exchange rules yesterday, in a move to develop the domestic financial markets.
It said these measures, which will take effect from today, are in line with the Financial Sector Masterplan, which was launched last month.
Licensed onshore banks, whether commercial, investment or Islamic, are now permitted to trade foreign currency against another foreign currency with a resident for any purpose.
This means that residents will now be allowed to buy and sell any foreign currency (except for new Israeli shekel) against another foreign currency instead of being restricted to buying and selling foreign currency against the ringgit.
They can fund the foreign currency trading activities from their own existing foreign currency funds, conversion of ringgit on spot basis and through permitted foreign currency credit facilities.
Money changers and approved remittance service operators are allowed to buy and sell foreign currency with residents and non-residents on cash basis.
BNM said onshore banks will also be allowed to offer ringgit-denominated interest rate derivatives which include interest rate futures, options and swaps to a non-bank non-resident.
The central bank has also allowed residents flexibility to convert their existing ringgit or foreign currency debt obligation into a debt obligation of another foreign currency.
Currently residents with domestic ringgit credit facilities are allowed to convert ringgit up to RM1 million per calender year for individuals and up to RM50 million on a corporate group basis.
BNM also said that the conversion through swap of an existing ringgit debt obligation should not lead to actual delivery of foreign currency at the inception of the transaction.
For example, a resident exporter due to receive foreign currency export proceeds periodically and has an existing ringgit loan from a licensed onshore bank can now have a swap transaction to convert the ringgit debt obligation into foreign currency obligation to match the foreign currency export receivables.
It added that a resident can also convert through swap his existing foreign currency debt obligation with a licensed onshore bank into another foreign currency debt obligation with a non-resident bank or vice versa.
All conversions are subject to prevailing rules on foreign currency credit facilities.
Read more: Malaysia relaxes forex rules to boost mart http://www.btimes.com.my/Current_News/BTIMES/articles/rup30bb/Article/#ixzz1mbXnodgL
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