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August 2008

FX market round up: StanChart relaunches Shariah solution




Standard Chartered Bank has relaunched the Shariah-compliant version of its online treasury FX trading and hedging platform under its global brand for Islamic products, Standard Chartered Saadiq. The bank says it is the first to launch online services in Islamic FX utilizing the wa’ad structure, which enables Islamic companies and institutions to hedge forward FX exposures under a Shariah-compliant structure.







This is a profound ethical issue. These are very sophisticated operations where the counterparty was not a hedge fund – it was not even a financial institution. Should a grocery chain be selling volatility protection?

Guillermo Ortiz, central bank governor, lambasts investment banks for entering FX trades with local retailer Comercial Mexicana which led to Mexico’s monetary authority having to raise over $8 billion to cover positions

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