Scenario of Islamic money market instruments in some selected Muslim countries: A lesson for Bangladesh
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Date
2016-12
Journal Title
Journal ISSN
Volume Title
Publisher
CRP, International Islamic University Chittagong, Bangladesh
Abstract
The main focus of this study is to investigate the incumbent scenario of Islamic money
market instruments in and outside of Bangladesh along with the close observation of
conventional one. Islamic money market in different jurisdictions has deeply been
observed and studied in this paper. From the experiences of global situation, Bangladesh
money market has been found at a nascent stage. Some recommendations and proposals
have been suggested to set up and formulate a vibrant, robust, healthy and sustainable
Islamic money market for effective competition. Having an abundant potentiality of
Islamic money market among, especially, in Muslim countries, this paper invokes
respective central banks, Islamic financial institutions and non-bank Islamic financial
institutions to come forward to operate and practice Shariah based money market in a
unique way or along with conventional money market. Bank Negara Negotiable Notes,
Islamic Accepted Bills (IAB), Islamic Negotiable Instruments of Deposit (INID), Rahn
Agreement are found suitable for Bangladesh money market and two new instruments
called Central Bank Mudarabah Sukuk (CMBS) and Government Murabahah Sukuk
(GMS) have been proposed for the country.
Description
Keywords
Shariah, Islamic Money Market, Islamic Financial institutions, Islamic Interbank Money Market
Citation
IIUC-Business-Review-Vol-5-Dec-2016-05