KUALA LUMPUR, Monday, [4 June 2012]: Bank Islam Malaysia Berhad (Bank Islam) today launched its Islamic Dual Currency Investment-i (DCI-i), a deposit product that is expected to earn higher returns than the regular foreign currency deposits.
Bank Islam’s DCI-i is a fixed deposit product linked to the performance of a pair of foreign currencies based on the concept of Wakalah-lil-Istithmar (an agency contract for investment) that meets both local and international Shariah standards.
The product essentially allows investors the flexibility to determine their own parameters when planning their investments. DCI-i is targeted at investors who have views on the price movements of foreign currencies and those who seek potentially higher short term returns than traditional deposit products.
In addition, Bank Islam’s DCI-i is insured by the Perbadanan Insurans Deposit Malaysia (PIDM).
Bank Islam’s Head of Treasury, Puan Norashikin Mohd Kassim said: “The product is expected to appeal to the Bank’s existing customers who are already investing in dual currency structured investments or those with foreign currencies commitments or obligations, such as payment for education abroad”.
“It will also be an alternative risk management tool for Malaysian institutions or corporations who seek to manage their foreign currency exposures using a Shariah compliant product,” she added.
The DCI-i provides an avenue to generate higher returns from investment in alternative currencies with the investor’s own choice of currencies, tenure and conversion rate.
Puan Norashikin further stressed the importance of investor education and protection through proper disclosure and that it is crucial for investors to fully understand the nature of such investment products and the risks involved before deciding on their investment choices.