Friday, February 17, 2012

Bank Negara, Fatwa Council Explains Foreign Currency Trading Status

KUALA LUMPUR, Feb 16 (Bernama) -- Bank Negara Malaysia clarified that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks as provided for under the Exchange Control Act 1953.

Source from (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=646174
Published: February 17, 2012


Such trading is also allowed with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011.

In addition, Shariah-compliant financial products, including foreign exchange related transactions, offered and transacted by licensed Islamic financial institutions are approved by the Shariah Committee of the respective financial institutions with endorsement from the Shariah Advisory Council of Bank Negara Malaysia, it said in a statement Thursday.

In a separate statement to explain the ruling that foreign exchange (forex) trading is forbidden (haram) for Muslims, the National Fatwa Council chairman, Tan Sri Dr Abdul Shukor Husin, said the ban on forex trading is in reference to the ban on forex trading scheme by individual spot forex via electronic platform which is against the law.

He said the disallowance is not applicable to forex trading through licensed money changers and financial institutions.

"I find that my statement was wrongly reported by some media organisations that said that all foreign exchange trading is forbidden," he said.

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