Manama, Kingdom of Bahrain – 8th December 2019 – As part of the ongoing efforts towards the development of Islamic banking and promoting liquidity managment for Islamic retail banks, the Central Bank of Bahrain (CBB) launched Single binding Wa’ad based structure facility which is a Shari’ah compliant alternative to the Foreign Exchange Forward.
This tool is based on the “Single Binding Wa’ad based structure” agreement that has been developed by the International Islamic Financial Market (IIFM) and International Swaps and Derivatives Association (ISDA). It is considered the latest effort by the industry body to improve the available hedging practices in the Islamic banking sector.
The CBB emphasizes that providing such Shariah-compliant product contributes to the diversification of Islamic investment opportunities and enhances the Kingdom’s position as a financial center for Islamic banking.