Current Legal Issues
- BANKING AND FINANCIAL SERVICE
- (11) Trading in Foreign Currency
Among the activities of banks is buying and selling foreign currency to make it
available in sufficient quantities to satisfy the needs of their customers, especially
businessmen involved in importing goods. Another reason why banks embark on such activity
is profit arising from the difference between buying and selling rates.
(26) Buying and selling foreign currency, at market price and
for more or for less, is in order. There is also no difference whether selling or buying
is done instantly [on the spot] or in the future. For, since the bank deals with instant
transactions, it can deal with deferred ones.