Sharia forex hedges take off
FRONT PAGE NEWS
The bank joins an increasing number of institutions including Deutsche, HSBC and Standard Chartered to offer sharia-compliant forex hedges.
The five-year swap was entered with Dubai Financial, a direct investment vehicle of Dubai Investment Group, on October 18. Dubai Financial is using the structure to hedge FX translation risk arising from the group's equity investment in Bank Islam.
Separate stages
The swap uses commodity murabahah transactions as the underlying contract. A murabahah
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