Salam
I wanted to check if it is halal for my business to buy foreign exchange futures contracts to cover us for the next 3 to 6 months of our purchases? We currently only buy spot.
JazakAllah khair
Wasalam
May Allah bless you.
Conventional future contracts are usually not considered as shariah compliant. AAOIFI standard says:
2/3 It is also prohibited to deal in the forward currency market even if the
purpose is hedging to avoid a loss of profit on a particular transaction
effected in a currency whose value is expected to decline.
You should consult a scholar if you wish to find a shariah compliant structure.
Kind regards