Archives of “foreign currency” tag

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UAE backs Dubai's banks

  
Analysis, Economy, Education
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dubai-Nov. 30 (Bloomberg) — The yen weakened against higher- yielding currencies after the United Arab Emirates’ central bank said it “stands behind” the country’s banks, easing concern about a possible default by state-owned Dubai World.

The euro advanced for the first time in five days against the yen after the Abu Dhabi-based central bank of the U.A.E. said lenders will be able to borrow using a special facility tied to their current accounts. The Australian and New Zealand dollars rallied as demand rose for riskier assets after concern eased over credit losses in the Middle East.

“The decision by U.A.E. helped calm down credit woes,” said Akane Vallery Uchida, foreign-currency strategist in Tokyo at Royal Bank of Scotland Plc. “The yen, which was bought over jitters in Dubai, is being sold.”

Malaysia Islamic clerics forbid forex trading

  
Analysis, Education
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Malaysia Islamic clerics forbid forex trading

Malaysia’s highest Islamic body has issued an edict forbidding foreign exchange trading by Muslim individuals, saying such speculation violates Islamic law.

The National Fatwa Council ruled forex trading by money changers or between banks was allowable but trading by individuals “creates confusion” among the faithful, according to a report issued Wednesday by state news agency Bernama.

Council chairman Abdul Shukor Husin warned “there are many doubts about it (forex trading) and it involves individuals using the Internet, with uncertain outcomes,” Bernama reported.

“A study by the committee found that such trading involved currency speculation, which contradicts Islamic law,” he was quoted saying.

Forex and religion don’t have a great history. The only time Jesus uses physical force is when heexpels the money-changers from the temple. Matthew 21:12-13:

And Jesus went into the temple of God, and cast out all of them who sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves,
And said unto them, It is written, My house shall be called the house of prayer; but ye have made it a den of thieves.

Skipping over any doctrinal issues, trading foreign currency is a terrible idea for individual investors. It’s a zero-sum game and you most likely won’t win.

You’ll notice that it’s always around forex that trading outfits style their sales pitches in order to lure in customers. If you’re saving for your retirement, trust me, stay away from forex.

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