Insurers and banks are set to be allowed to offer foreign currency operations in Malaysia, as long as they are compliant with Islamic Law, it has been announced.

The Malaysian Government said they would allow “qualifying” banks and insurers to operate such services as long as they are separate from the national currency the Ringgit.

Currently banks and insurers which are based in the country’s offshore centre in Labuan are allowed to offer Islamic financial services in international currencies.

Under Islamic Law there are strict guidelines in financial services in terms of where money can be invested and the charging of interest.