INDONESIA - REGULATIONS - BI-term review of the rules of Islamic forex

www.bisnis.com - JAKARTA: Bank Indonesia is conducting a study to create a kind of instrument placement of foreign currency deposits for Islamic banking.
Difi A. Johansyah, Director of Public Relations Group of Bank Indonesia (BI), said the central bank's Monetary Management Department is conducting studies to instrument placement deposits (term deposits) of foreign exchange which currently only exist in the conventional, can be adopted by Islamic banks.
Along with the move, the central bank is also being carried out studies of the regulation of Islamic monetary operations are expected in the not too old to do the adjustment.
"So the next target of Islamic banks can also avail of foreign currency deposit scheme similar term," he told Business Today Sunday, June 10, 2012.  (source)

INDONESIA - FINANCE - HSBC to Pioneer Islamic Forex Products in Indonesia

www.bloomberg.com -HSBC Amanah will offer Islamic foreign exchange forwards and cross-currency hedging instruments in Indonesia starting next month to help Shariah-compliant banks manage risks arising from currency fluctuations. “For these two products, we are the first to receive approval from the central bank,” Herwin Bustaman, HSBC Amanah’s Indonesia head, said in a telephone interview yesterday. “Right now Islamic banks are exposed to market risk. This will help the capital markets.” (source)

MALAYSIA - REGULATIONS - Bank Negara clarifies Fatwa ruling on forex trading Read more: Bank Negara clarifies Fatwa ruling on forex trading (2)

www.nst.com.my - KUALA LUMPUR: Bank Negara Malaysia said today that only licensed financial institutions and money changers are allowed to conduct foreign currency trading.

This statement came about after the National Fatwa Council's ruling on Wednesday that forex trading is forbidden for Muslims. (source)

MALAYSIA - REGULATIONS - Foreign Currency Trading

Foreign Currency Trading
Last Updated : 17 Feb 2012
Source By : www.bnm.gov.my

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FOREIGN CURRENCY TRADING

Bank Negara Malaysia wishes to inform the public 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 and  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.

Bank Negara Malaysia
16 February 2012

MALAYSIA - FIQH - Forex Trading 'Haram', Says National Fatwa Council

www.bernama.com - KOTA BAHARU, Feb 15 (Bernama) -- The National Fatwa Council today ruled that foreign exchange trading (forex trading) is forbidden (haram) for Muslims.

Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading is against Islamic law and creates confusion among Muslims.

"A study by the committee found that such trading involves currency speculation, which contradicts Islamic law. (source)

MALAYSIA - FIQH - Bank Negara, Fatwa Council Explains Foreign Currency Trading Status

www.bernama.com - 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.

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

BANKING - Malaysia c.bank sharia advisers forbid forward forex fee

Aug 26 (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.