KOTA BARU, Feb 15 — The National Fatwa Council has ruled that foreign exchange trading (forex trading) is haram for Muslims, Bernama Online reported today.
Council chairman Tan Sri Dr Abdul Shukor Husin told the news portal that forex trading is against Islamic law, as such trading involves currency speculation.
He also said Muslims should not engage in forex trading as there are many uncertainties surrounding the practice and it involves individuals using the Internet, with uncertain outcomes.
Abdul Shukor, on the other hand, confirmed that other forms of trading in foreign currencies, such as by money changers or between banks, are permissible, as they do not involve currency speculation or uncertain outcomes.
He also announced that the same meeting ruled that it is permissible for Muslims to invest in or save with the Premium Saving Certificate scheme managed by Bank Simpanan Nasional (BSN).
He said the decision was reached after a briefing by the Bank Negara syariah panel on the scheme's implementation and a change in the trading system to the Islamic concept of Mudharabah.