http://wiki.islamicfinance.de/index.php?action=history&feed=atom&title=Forex_Swap 2026-05-06T06:30:36Z Revision history for this page on the wiki MediaWiki 1.27.0 http://wiki.islamicfinance.de/index.php?title=Forex_Swap&diff=157&oldid=prev 2010-10-01T11:59:51Z

<p></p> <p><b>New page</b></p><div>Currencies in Islamic law are only permitted to be exchanged at spot (today) according to [[AAOIFI]] [[Shariah]] Standards. Certain structures based on [[Murabaha]] or [[Waad]] do replicated the outcome of a forward currency exchange.<br /> <br /> A conventional Forex swap is the exchange of two loans in different currencies of equal value at spot, which are both paid back at same date in the future. This implies a forward rate of the currencies involved. The loans at spot are netted and not paid out.<br /> <br /> An Islamic Forex swap could be replicated by use of two [[Tawarruq]] in different currencies of equal value at spot:<br /> <br /> A sells to B 1000 USD of Platin at 1050 payable after one year.<br /> B sells A 750 Euro of Aluminium at 780 Euro payable after one year.<br /> Exchange rate at spot is assumed at 1.33.<br /> <br /> After one year 1050 USD have to be paid by B and A has to pay 780 Euro to B. This implied a currency forward rate.<br /> <br /> See also: [[Islamic Derivatives]].<br /> <br /> ==References==<br /> <br /> * [http://www.allenovery.com/AOWeb/binaries/45568.pdf Allen &amp; Overy on cross currency swaps]<br /> * [http://www.kantakji.com/fiqh/Files/Finance/N398.pdf Shariah Parameters on Islamic Foreign Exchange Swap as Hedging Mechanism in Islamic Finance] Dr. Asyraf Wajdi Dusuki</div>

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