Design two Islamic currency swaps structures involving pounds and ringgits.
Design two Islamic currency swaps structures involving pounds and ringgits.
Islamic instruments
Design two Islamic currency swaps structures involving pounds and ringgits.
(a) Students should demonstrate a deep understanding of the concept of conventional currency swap and identify the non-shariah compliant elements in such products. A good critical appraisal of exchange of money (Bay’ al-Sarf) should be well displayed.
(b) Then they should develop two Islamic currency swaps involving pounds and ringgits by applying their knowledge of Islamic finance principles and conventional concept of swaps.
(c) Student should refer to the relevant AAOIFI Standards and fatawas from Majma al-fiqh or any relevant authoritative sources to justify their proposed products.
(d) Students should assess the risk profile of the product as well as the practicality of these proposed products being a good risk mitigating tools.
in the introduction
in this essay will focus in convetional swap and currency swap from islamic point of view
explain two type of swap eg exchange pound to Malaysian Ringgits.
then taik about risk mangement as hedging
what is the financial derivative with summary of each reference (kolb and overdahl 2011/0 specific more deatils on swap and type of financail swap
what is conventional currency swap followed by islamic perspective (forbidden elements)
the aim currency swap is to mitigate and currency risk
risk in currency can lead to riba and gharra referneces (Ayub 2011)
as type of swap foreigin currency swap known as fx swap ( give example of one party borrow alternative currency uk firm exchange to malysien (MYR) what are the main categories of currency swap eg floating for floating
what is vanila currency swap
what is bilateral contart according to islamic figh reference (Ayub 2011)
what is benift of currency swap
the report have to display tow priciple of islamic such as waad and tawarruq and analysis them in islamic point of view refernce (ayub 2011) and (Duski 2009) and AAOIFI and islamic figh council of the OIC demonstrate your analysis by showing diagram of each
recmmendations
conclusion
references
please each idea you talk refer back to thev refernece and there are somr reference bleow Al-Bashir, M. (2008) Risk management in Islamic finance: An analysis of derivatives instruments .. [online] BRILL. available from
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