An expert in Islamic economics has strongly warned against participating in Forex trading, stating that all forms of such transactions are forbidden under Islamic principles. He emphasized that those who engage in Forex will ultimately face financial losses.
According to the expert, the Islamic economic system is based on real, not speculative or imaginary, transactions. He also rejected the concept of so-called “Islamic accounts” in Forex trading, saying these are misleading and do not align with Islamic financial principles. He added that most people involved in Forex lack genuine economic knowledge, despite being active in the market.
In a related announcement, the General Directorate of Security in Erbil declared that Forex and electronic currency businesses are illegal across the Kurdistan Region and Iraq. These activities are not licensed or regulated by any official authority.
The statement noted that according to the guidelines of the Central Bank of Iraq and the Ministries of Finance and Economy at both federal and regional levels, there are no laws to govern such financial activities. Companies that claim to offer Forex services under different names or run training courses in electronic or metal currency trading are considered unauthorized and operating outside the legal framework.
Forex, known as one of the largest global financial markets, involves the trading of electronic currencies but remains unregulated and prohibited in the Kurdistan Region.