A facility offered to our customers for treasury transactions to hedge against movements in foreign exchange rate using the underlying transactions that are allowed under the Shariah principles and applicable regulations.
Benefits of FCH iB
To mitigate the potential loss from foreign exchange risk for a certain period based on the underlying transactions that are allowed under the Shariah Principles and applicable regulations.
Underlying Transactions under FCH iB
The followings are the FCH iB Underlying Transactions:
Forward iB is an agreement between two parties (the Bank and the Customer) to exchange 2 (two) different currencies at one particular settlement date with a Forward Agreement scheme followed by transactions in accordance with the Shariah principles.
Cross Currency Hedging iB is an agreement between two parties to conduct a series of exchanges of two different currencies over a certain period of time using transactions that is in accordance with Sharia principles. Cross Currency Hedging iB can be performed with or without currency exchange at the beginning (notional)