Deutsche Bank has structured what it claims to be the first sharia-compliant forex option, for Bahrain-based Gulf Finance House (GFH). The €30 million deal will enable GFH’s clients to hedge their investments against dollar/euro volatility.
The forex option is based on a promissory currency sale undertaking that GFH has entered into with the German bank. Under this mechanism, Deutsche promises to buy the euro in the future at a pre-determined price.
“If the euro falls, this will benefit our c