KUALA LUMPUR: Standard Chartered Saadiq has partnered with Agrobank to provide a Shariah-compliant digital foreign exchange (FX) solution for the development financial institution's international transactions.
In a joint statement, the two parties said the collaboration, which began in August, covers FX spot transactions and foreign currency settlements related to Agrobank's trade finance activities.
Under the partnership, Agrobank will have access to Standard Chartered's international network and FX payment capabilities covering over 130 currencies in more than 40 markets, while ensuring alignment with Shariah principles.
Standard Chartered Saadiq said it is Agrobank's first international partner dedicated to Shariah-compliant FX solutions.
The arrangement is aimed at supporting the cross-border requirements of Agrobank's customers, particularly businesses in the agriculture and food sectors involved in regional and international trade.
It will also expand Agrobank's correspondent banking network and provide access to Standard Chartered's transaction banking, financial markets and digital platforms.
Standard Chartered Saadiq Malaysia chief executive officer Bilal Parvaiz said the partnership would combine the bank's international network with its Shariah-compliant FX capabilities to support trade flows involving Malaysia's agriculture and food sectors.
“By combining our international footprint with our Shariah-compliant FX capabilities, we are expanding access to Islamic financial solutions for the agriculture and food sectors.
“This collaboration reinforces our ambition to be the leading global bank for Islamic cross-border trade, connecting clients in Malaysia to opportunities across ASEAN, the Middle East, and beyond,” he said.
Meanwhile, Agrobank president and group chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said demand for Shariah-compliant FX services was increasing as the bank's customers expanded into cross-border trade.
He said the partnership would help Agrobank's customers manage cross-border risks and access overseas markets.
“By combining Agrobank's deep sector expertise with Standard Chartered Saadiq's international network and capabilities, we are strengthening our ability to support our customers in managing cross-border risks, access new markets and pursuing regional and international growth opportunities with greater confidence.”
Standard Chartered operates across 55 markets, including several Asean economies.
