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.

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