Forex In The Eyes Of Shariah: A Qualitative Analysis In The Malaysian Context

Abstract

The purpose of this study is to expound the fundamentals leading to the verdict about the permissibility of foreign exchange trading or simply forex. The jurisdiction will cover Quranic verses, Hadith and Islamic legal maxims or commonly known as qawaid fiqhiyyah. The contemporary views of the ulema were also discussed as the scope would later be focused in a Malaysian context. The primary data from a questionnaire to 100 Malaysian respondents would be presented. The findings show that most of the Malaysian respondents were aware of Forex trading but they had never attempted. This was due to their state of not well informed about Forex due to skepticism and extreme doubt. They also felt more secure not involved with this trading and this related strongly to their prejudice. Therefore, implications were covered in three spheres of influence: economic, social and national perspectives. Finally, recommendations for respective parties such as governments, auctioning bodies and general public would be mentioned as well in order to address the public incognizance about Forex from Sharia perspective. The research concluded that riba (usury) will never be accepted in any circumstances, and if Forex insists on incorporating this despised element, then this financial transaction might stay haram (forbidden) indefinitely, unless otherwise abiding the Islamic apparatus and guidelines.