National news agency (Bernama) quoted council chairman Dr Abdul Shukor Husin as having said that forex trading is against Islamic law because involves currency speculation.
Also that it creates confusion among Muslims.
He said this to reporters after chairing the Council's 98th conference in Kota Baru.
He said Muslims should not engage in forex trading as there are many doubts about it and it involves individuals using the internet, with uncertain outcomes.
But other forms of trading in foreign currencies, such as by money changers or between banks, are permissible, as they do not involve currency speculation or uncertain outcomes..
Dr Abdul Shukor said the council also ruled that it is permissible for Muslims to invest or save in the Premium Saving Certificate scheme managed by Bank Simpanan Nasional (BSN).
The decision was reached after a briefing by the Bank Negara syariah panel on the scheme's implementation.
"At first we had doubts about the scheme's implementation, but we were satisfied after the trading system was changed into the Islamic concept of Mudharabah," he said.