Only real-time spot forex ‘haram’, Fatwa Council clarifies

(The Star) – National Fatwa Council chairman Tan Sri Dr Abdul Shukor Husin has clarified that the council’s declaration that foreign exchange (forex) trading was “haram” only applied to real-time individual spot forex transactions through the electronic medium.

In a statement on Thursday, he said the decision to prohibit this form of forex trading was made because there were doubts as to whether it conformed to Islamic teachings and the laws of Malaysia.

“I found that my statement had been misreported by certain sections of the media, which made it appear as though all forms of forex trading were “haram”,” he said.

According to him, the prohibition did not affect forex trading by money changers or between licensed banks.

The council had cited that real-time individual spot forex transactions through the electronic medium involved currency speculation, which contradicted Islamic law.

Bank Negara Malaysia had earlier on Thursday explained that the 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. – BERNAMA