Showing posts with label fee. Show all posts
Showing posts with label fee. Show all posts

Saturday, August 28, 2010

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.