Design two Islamic currency swaps structures involving pounds and ringgits.

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Islamic instruments

Design two Islamic currency swaps structures involving pounds and ringgits.

(a) Students should demonstrate a deep understanding of the concept of conventional currency swap and identify the non-shariah compliant elements in such products. A good critical appraisal of exchange of money (Bay’ al-Sarf) should be well displayed.

(b) Then they should develop two Islamic currency swaps involving pounds and ringgits by applying their knowledge of Islamic finance principles and conventional concept of swaps.

(c) Student should refer to the relevant AAOIFI Standards and fatawas from Majma al-fiqh or any relevant authoritative sources to justify their proposed products.

(d) Students should assess the risk profile of the product as well as the practicality of these proposed products being a good risk mitigating tools.
in the introduction
in this essay will focus in convetional swap and currency swap from islamic point of view
explain two type of swap eg exchange pound to Malaysian Ringgits.
then taik about risk mangement as hedging
what is the financial derivative with summary of each reference (kolb and overdahl 2011/0 specific more deatils on swap and type of financail swap
what is conventional currency swap followed by islamic perspective (forbidden elements)
the aim currency swap is to mitigate and currency risk
risk in currency can lead to riba and gharra referneces (Ayub 2011)
as type of swap foreigin currency swap known as fx swap ( give example of one party borrow alternative currency uk firm exchange to malysien (MYR) what are the main categories of currency swap eg floating for floating
what is vanila currency swap

what is bilateral contart according to islamic figh reference (Ayub 2011)
what is benift of currency swap
the report have to display tow priciple of islamic such as waad and tawarruq and analysis them in islamic point of view refernce (ayub 2011) and (Duski 2009) and AAOIFI and islamic figh council of the OIC demonstrate your analysis by showing diagram of each
recmmendations
conclusion
references
please each idea you talk refer back to thev refernece and there are somr reference bleow Al-Bashir, M. (2008) Risk management in Islamic finance: An analysis of derivatives instruments .. [online] BRILL. available from

Dusuki, W. A. (2009) International conference on Islamic perspectives on management and finance Shariah parameters on Islamic foreign exchange swap as hedging mechanism in Islamic finance no [online] available from <https://www.iefpedia.com/english/wp-content/uploads/2011/01/islamic-swap.pdf> [1 October 2016]Ayub, M. (2011) Use of W´ad and Tawarruq for swaps in the framework of Islamic finance no [online] available from <https://www.iefpedia.com/english/wp-content/uploads/2011/12/Muhammad-Ayub.pdf> [30 October 2016]

Bakir, M. (2014) Bay’ al-tawarruq [online] available from <https://investment-and-finance.net/islamic-finance/b/bay-al-tawarruq.html> [15 November 2016]Alisa Ahmad, A. and Afifi Ab Halim, M. (2014) ‘The concept of hedging in Islamic financial transactions’. Asian Social Science 10 (8)

Flavell, R. R. (2010) Swaps and other derivatives, 2nd edition [online] available from <https://www.wiley.com/WileyCDA/WileyTitle/productCd-047072191X.html> [6 November 2016]

Fung, H.-G. and Tse, Y. (eds.) (2013) International financial markets. London, United Kingdom: Emerald Group Publishing

Gikhman, I. I. (n.d.) ‘Market risk and mark-to-market valuation of the cross currency swap’. SSRN Electronic Journal

Holton, G. (2016) ‘Currency swap’ [online] available from <https://www.glynholton.com/notes/currency_swap/> [20 November 2016]

Hussain, K. and Mehboob, F. (2009) Hedging market risk in Islamic finance Kazi Hussain is the head of Islamic finance, Europe Arab bank plc, and Fahad Mehboob is associate director of Islamic finance at Europe Arab bank plc no [online] available from <https://www.worldcommercereview.com/publications/article_pdf/105> [20 November 2016]

IIBI (2016) Institute of Islamic banking and insurance – key term – T [online] available from <https://www.islamic-banking.com/glossary_t.aspx> [20 November 2016]

Ísberg, G. (2002) ‘The interbank currency swap market’. Monetary Bulletin 3 32–35

Islam Web (2016) Ruling on dropshipping [online] available from <https://www.islamweb.net/emainpage/index.php?page=showfatwa&Option=FatwaId&Id=161689> [20 November 2016]

Islamweb (2016) ????? – ?????? – ???? ?????? ???????? – ?? ??? ????? ?????? ?????? ??????- ????? ???5 [online] available from <https://library.islamweb.net/newlibrary/display_book.php?idfrom=2978&idto=2979&bk_no=10&ID=2811> [20 November 2016]

King, M. R., Osler, C. L., and Rime, D. (n.d.) ‘Foreign exchange market structure, players and evolution’. SSRN Electronic Journal

King, M. R., Osler, C. L., and Rime, D. (n.d.) ‘Foreign exchange market structure, players and evolution’. SSRN Electronic Journal

Kolb, R. W. and Overdahl, J. A. (2014) Financial derivatives [online] Google Books. available from <https://books.google.co.uk/books?id=GORRCAAAQBAJ&printsec=frontcover&dq=what+is+a+financial+derivative%23&hl=en&sa=X&ved=0ahUKEwiKsb6InLjQAhVlCcAKHZVPABYQ6AEIHTAA#v=onepage&q=derivative&f=false> [20 November 2016]

Marjan, M. (2015) Islamic capital markets principles and practices. International Shari’ah Research Academy for Islamic Finance

Mohamad, A. and Laldin (n.d.) The concept of promise and bilateral promise in financial contracts: A Fiqhi perspective no [online] available from <https://uaelaws.files.wordpress.com/2012/05/the-concept-of-promise-and-bilateral-promise-in-financial-contracts-a-fiqhi-perspective.pdf> [18 November 2016]

Naveed (2015) AAOIFI Standard Number One – Trading in currencies [online] available from <https://www.islamicfinance.com/2015/06/aaoifi-standard-number-one-trading-currencies/> [18 November 2016]

Razali, S. S. (2008) THE CONCEPT OF WA’AD IN ISLAMIC FINANCIAL CONTRACT* no [online] available from <https://www.iefpedia.com/english/wp-content/uploads/2010/02/The-Concept-of-Waad-in-Islamic-Financial-Contract.pdf> [19 November 2016]

Siti, S. and Razali (2008) THE CONCEPT OF WA’AD IN ISLAMIC FINANCIAL CONTRACT* no [online] available from <https://www.iefpedia.com/english/wp-content/uploads/2010/02/The-Concept-of-Waad-in-Islamic-Financial-Contract.pdf> [5 November 2016]

Sole, J. and Jobst, A. (2012) ‘Operative principles of Islamic derivatives: Towards a coherent theory’. IMF Working Papers 12 (63), 1

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