Muamalat launches Islamic dual currency investment

Bank Muamalat has launched the Islamic Dual Currency Investment, to be initially offered in the Malaysian Ringgit, Euro and US Dollars to wholesale customers, reports Bernama News.

DCI-i is a foreign exchange-based structured investment product under the concept of Wakalah bil Istithmar linked to the performance of a pair of foreign currencies, Bank Muamalat said in a statement.

The product essentially allows investors, who have a view on foreign currencies, to enjoy potentially higher returns compared with traditional deposit products.

The DCI-i entails a relatively higher risk profile as it is not capital protected but provides an avenue to generate higher returns from investment in alternative currencies.

Bank Muamalat Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid was quoted as saying in the statement that the bank continued to expand its range of services and products, encompassing not only traditional Islamic banking products, but also more innovative syariah compliant investment products to cater to increasing levels of customer sophistication.

He, however, reiterated the importance of investor education and protection through proper disclosure and, the need for investors to clearly understand the nature of such products and risks involved.