The National Fatwa Council (Malaysia) ruled that foreign exchange trading (forex trading) is forbidden (haram) for Muslims. Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading is against Islamic law and creates confusion among Muslims.
According to a press release published on February 15th, 2012, "a study by the committee found that such trading involves currency speculation, which contradicts Islamic law. For that reason, the National Fatwa Council has decided that it is haram for Muslims to be engaged in such trading".
Abdul Shukor said Muslims should not engage in Forex trading as there are many doubts about it and it involves individuals using the internet, with uncertain outcomes.
He said the meeting also ruled that it was permissible for Muslims to invest or save in the Premium Saving Certificate scheme managed by Bank Simpanan Nasional (BSN). He said the decision was reached after the committee was satisfied with the briefing by the Bank Negara syariah panel on the scheme’s implementation. “At first we had doubts about the scheme’s implementation, but we were satisfied after the trading system was changed into the Islamic concept of Mudharabah,” he said.
RIBH – Bernama, Malaysia