Al-Arafah Bank, JP Morgan sign Shariah-compliant treasury deal

Al-Arafah Islami Bank PLC recently signed a Master Murabaha Agreement with international financial institution JP Morgan recently to earn overnight returns on foreign currency balances held in its accounts with the institution.
The agreement will allow the bank to put its foreign currency balances to use through a Shariah-compliant arrangement while managing short-term liquidity and treasury operations.
Sazzad Anam, executive director and head of Bangladesh Office at JP Morgan, and Mohammad Abdul Mobin, senior executive vice president and head of treasury at Al-Arafah Islami Bank, exchanged the agreement at a ceremony, according to a press release.
Mir Md Hassanul Zahed, executive vice president and head of financial institutions, offshore and remittance business at the bank, along with senior officials from both organisations, attended the event.
The arrangement is expected to support the bank’s foreign currency management and facilitate international trade and remittance settlements.