Foreign Exchange is the mechanism of exchanging one currency into another currency. For Spot FX, the exchange of the currencies take place either on the same day, the following day or after two business days.
Islamic FX Forward
A Forward Foreign Exchange is a predetermined contract in which the transaction of the currency will take place on a specified date in the future with a predetermined exchange rate.
Asian Finance Bank will either use the structure of Deferred Sales (Bai Muajjal) or Promise (Waad) to facilitate the fixing of the predetermined exchange rate.