Sharia banks may get hedge funding tool next year
In order to reduce risks of financial transactions, member countries of the International Islamic Financial Market (IIFM) may soon enjoy a hedging facility.
IIFM member countries would sign a master agreement, called a tahawwut agreement, to accommodate the hedging facility.
The agreement, according to Mulya Siregar, Bank Indonesia’s director for sharia banking, was needed to ease the risks of currency-related transactions amid currency concerns affecting both developed and emerging economies.
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