Published 2026-01-17
Keywords
- indonesia
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Abstract
Exchange rate volatility is a market risk that affects the financial stability of Islamic insurance institutions, particularly in international transactions. Exchange rate fluctuations may influence investment performance, reinsurance costs, and claim payments, leading to greater financial uncertainty. This study aims to analyze the implications of exchange rate volatility for Islamic insurance and its risk management strategies based on Sharia principles. A qualitative literature review method is employed by examining scientific journals, Financial Services Authority regulations, DSN-MUI fatwas, and AAOIFI and IFSB standards published. The findings highlight the importance of effective and Sharia-compliant exchange rate risk managemenet.
Keywords: Exchange Rate Volatility, Islamic Insurance, Risk Management, International transaction
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References
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