Shari’ah Forward Exchange Contracts (FEC)
The first Shari’ah-compliant FEC in South Africa to be contracted under the ISDA (International Swaps and Derivatives Association) Tahawwut Framework. This product allows you to hedge out your real foreign exchange (FX) risks in a Shari’ah-compliant manner.
Some of the Benefits
Contract options
The product is available with fixed, partially or fully optional contracts
Award-winning platform
The Shari’ah FEC is available through our award-winning eMarket trader platform
Currencies
All major currencies are available
Real-time
Trade in real-time by integrating into our Business Online platform
Key features
The main differences between a conventional ISDA and the Tahawwut ISDA can be summarised as follows:
- A conventional ISDA can be utilised for speculative purposes. The Tahawwut ISDA contains a clause where the counter parties to the agreement acknowledge that this agreement will not be utilised for speculative purposes.
- In a Shari’ah FEC, the actual purchase and sale of the FX takes place at the maturity date. On the booking date, it is only a promise to enter into a purchase agreement on the maturity date.
How to get it
- Contact your Business Banker or Relationship Manager
- Email us on [email protected]
-
Key features
-
How to get it
The main differences between a conventional ISDA and the Tahawwut ISDA can be summarised as follows:
- A conventional ISDA can be utilised for speculative purposes. The Tahawwut ISDA contains a clause where the counter parties to the agreement acknowledge that this agreement will not be utilised for speculative purposes.
- In a Shari’ah FEC, the actual purchase and sale of the FX takes place at the maturity date. On the booking date, it is only a promise to enter into a purchase agreement on the maturity date.
- Contact your Business Banker or Relationship Manager
- Email us on [email protected]
Shari'ah Banking certificates
- 1
We also offer
Shari'ah Savings and Investments
Bank according to Islamic economic principles with Standard Bank’s Shari’ ah compliant banking options.
Shari’ah-compliant Endowment Policy
Looking for a tax-efficient investment with low risk plus estate planning benefits? Get the Shari’ah-compliant Limited Endowment now.