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ALTERNATIVE TO RINGGIT FINANCING
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IMPROVE CASH MANAGEMENT
Foreign Currency Financing
Onshore Foreign Currency Financing-i (OFCF-i) is an Islamic trade facility in foreign currency for financing of:
- Import; and/or
- Export; and/or
- Local purchases (for pure local purchases*/ export purposes); and/or
- Local sales (for pure local sales*/ where customer has import or foreign currency obligations); and/or
- Services payables and/or operating expenses (domestic*/ foreign)
*For financing of pure local purchases, pure local sales and domestic services payables and/or operating expenses, must be complemented with an Islamic Foreign Exchange (FEC-i) facility.
Financing Tenure
- Minimum period of financing: 5 days.
- Maximum period of financing: 180 days, subject to the approved financing tenure by the bank.
Improved Cash Management
OFCF-i can help improve cash flow for better cash management and business expansion.
Shariah Contract
OFCF-i is based on the Tawarruq contract.
Natural Hedging Advantage
OFCF-i allows net exporters to have the advantage of natural hedging against foreign currency exchange risk.
Financing Amount
The minimum OFCF-i financing amount is USD5,000 or its equivalent.
