| Derivatives |
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Wiqa Forward Rate Agreement
- Considered to be one of the first of its kind in the world
- Based on the Shariah contract of Murabahah (cost plus basis term)
- An agreement of forward profit rate for a specified period based on an agreed notional principal amount in reference to a reference index (eg. KLIBOR)
- As a hedging mechanism it facilitates an efficient management of asset liability of a company
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