Dealing with foreign exchange risk

Today, I decided to talk about how to minimize the exchange rate risk. I know some of you are into importing and exporting, thus you will be exposed to the risk. When foreign transactions are being carried out by an entity or an individual there is always a probability that the foreign currency that you might be receiving might fall in value when compared to the currency of the country where your business is domiciled. Thus, you end up receiving a lower amount than you expected.

A way this risk can be mitigated is to make the goods you are selling in the country you want to sell them (if your business is big). Thus, any business dealing that has to do with the country should be dealt with in that country. I have dealt with the economic risk associated with foreign currencies in this article.

Make sure your business is halal. Everything happens according to the will of Allah (although you have freewill so you are responsible for your actions). Everything should be done deliberately for the sake of Allah. Part of doing something deliberately for the sake of Allah means hoping for a reward from Him (in this life and the life after death).

Halal means amything lawful Islamically.

Keep checking my blog regularly. Cheers!

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