Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
Publishing License
This is an open-access article distributed under the terms of
ISLAMIC MONEY MARKET AND APPLICATION OF THIRD PARTY GUARANTEE FOR ECONOMIC DEVELOPMENT
Corresponding Author(s) : Chaibou Issoufou
Humanities & Social Sciences Reviews,
Vol. 7 No. 2 (2019): March
Abstract
Purpose of Study: The Islamic money market plays a significant role in the development of the economy and providing funds for short term projects. This paper discusses money market instruments such as treasury bills, certificates of deposit, short period mudharabah interbank investment and Islamic accepted bills of exchange. It examines how short term instruments can be used to import and export goods. The study analyses the mechanisms and characteristics of Islamic money market and finds that it has the same characteristics and mechanisms of the conventional money market; they differ only in the instruments that are traded in the market. In the Islamic money market any instrument which is not in accordance with the principles of Islamic law is not traded.
Methodology: A qualitative research methodology in which an Islamic jurisprudential approach is used to analyse data and the permissibility of application of third party guarantee in Islamic money market was utilised.
Results: It was discovered in this paper that application of third party guarantee in Islamic money market is permissible. However, the guarantee should be done voluntarily without charging a fee so that the Islamic money market would be differentiated from the conventional money market wherein a fee is charged. Conclusion/- and Recommendations: In the Islamic money market, the instruments used in the market must be acceptable by the principles of Islamic law. It is impermissible in Islamic law for a company that conducts the investment of Islamic money market instruments to carry out its activities in non-halal activities. Islamic money market instruments can be used to finance short period investment, to import and export assets. The researcher suggested to conduct empirical research in order to have a clear picture on Islamic money market instruments and application of third party guarantee in the market.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Abu, S., 1992. Al-Ikhtiyarat: Dirasah Fiqhiyyah Tahliliyyah Muqaranah. Paper Presented at Fiqh Academic Conference, Majallah Majma‘ al-Fiqh al-Islami session 7. Jeddah: Majma‘ al-Fiqh al-I‘slami, 1(7).
- Al-Kasani, A.B.b.M.u.a.-H., 2005. Bada’i‘ al-Sana’i‘ fi Tartib al-Shara ’i‘ Dabata Nashu wa Haqaqahu, Muhammad Muhammad Tamir. Cairo: Dar al-Hadith, 7.
- Al-Qarafi, S.A.-D.A.a.-A.A.b.A.a.-R.a.-S., 2001. Al-Dhakhirah fi Furu‘ al-Malikiyyah. Beirut: Dar al-Kutub al-‘Ilmiyyah.
- Bek, A.I., 1936. Al-Mu‘amalat al-Shari‘ah al-Maliyyah. Cairo: Dar al- Ansar.
- Hammad, N., 2001. Qadaya Fiqhiyyah Mu‘asirah fi al-Mali wa Al-Iqtisadi. Damascus: Dar-al qalam.
- Ibn al- Sa ‘ati, M.a.-D.A.b.A.b.T.a., al-Hanafi, 2005. Majma‘a al- Bahraini wa Multaqa al-Niraini fi al-Fiqhi al- Hanafi. Beirut: Dar al-Kutub al Ilmiyyah.
- Ibn Qudamah, A.A.b.A., 2000. Al-Mughni. Beirut:‘Alam al-Kutub.
- Ibn Rushd, M.b.A.a.-Q., 1985. Bidayat al-Mujtahid wa Nihayat al- Muqtasid. Beirut: Dar- al- Ma‘rifah, 2.
- International Shari‘ah Research Academy for Islamic Finance (ISRA), 2017. Third party guarantee without consideration.
- Ismail, A.N.B., 2008. Treasury functions and islamic money market. Paper Presented at Seminar Organised by Islamic Banking and Finance Institute, Malaysia. Kuala Lumpur: IBFIM.
- Kaleem, A., 2007. Developing Islamic money market 17 September.
- Ma‘sum Billah, 2018. Islamic money market, practical paradigm of islamic money market. [Accessed 15th June, 2018].
- Ma’sum Billah, 2018. Concept of islamic money market. [Accessed 1st to July 2018].
- Malarvizhi, C.A., R. Nahar and S.R. Manzoor, 2018. The strategic performance of Bangladeshi private commercial banks on post implementation relationship marketing. International Journal of Emerging Trends in Social Sciences, 2(1): 28-33. DOI: https://doi.org/10.20448/2001.21.28.33
- Malimi, K., 2017. The influence of capital adequacy, profitability, and loan growth on non-performing loans a case of Tanzania banking sector. International Journal of Economics, Business and Management Studies, 4(1): 38-49. DOI: https://doi.org/10.20448/802.41.38.49
- Ming, K.F. and S.S.A. Yusoff, 2018. Commercial agreements opposed to public policy: The Malaysian interpretation. International Journal of Asian Social Science, 8(12): 1107-1119. DOI: https://doi.org/10.18488/journal.1.2018.812.1107.1119
- Mohammed, Z., 2017. Impact of sexual lifestyle on hormone-related health decline case married teachers. International Journal of Social Sciences Perspectives, 1(1): 1-5. DOI: https://doi.org/10.33094/7.2017.11.1.5
- Moussa, A., 2018. Does agricultural sector contribute to the economic growth in the case of the Republic of Benin? Journal of Social Economics Research, 5(2): 85-93. DOI: https://doi.org/10.18488/journal.35.2018.52.85.93
- Rafiq, Y.a.-M., 2009. Buhuth fi al-Masarif al-Islamiyyah. Syria: Dar al-Maktabi.
- Shari‘ah Advisory Council, 2006. Resolution of the securities commission. Kuala Lumpur: Securities Commission.
References
Abu, S., 1992. Al-Ikhtiyarat: Dirasah Fiqhiyyah Tahliliyyah Muqaranah. Paper Presented at Fiqh Academic Conference, Majallah Majma‘ al-Fiqh al-Islami session 7. Jeddah: Majma‘ al-Fiqh al-I‘slami, 1(7).
Al-Kasani, A.B.b.M.u.a.-H., 2005. Bada’i‘ al-Sana’i‘ fi Tartib al-Shara ’i‘ Dabata Nashu wa Haqaqahu, Muhammad Muhammad Tamir. Cairo: Dar al-Hadith, 7.
Al-Qarafi, S.A.-D.A.a.-A.A.b.A.a.-R.a.-S., 2001. Al-Dhakhirah fi Furu‘ al-Malikiyyah. Beirut: Dar al-Kutub al-‘Ilmiyyah.
Bek, A.I., 1936. Al-Mu‘amalat al-Shari‘ah al-Maliyyah. Cairo: Dar al- Ansar.
Hammad, N., 2001. Qadaya Fiqhiyyah Mu‘asirah fi al-Mali wa Al-Iqtisadi. Damascus: Dar-al qalam.
Ibn al- Sa ‘ati, M.a.-D.A.b.A.b.T.a., al-Hanafi, 2005. Majma‘a al- Bahraini wa Multaqa al-Niraini fi al-Fiqhi al- Hanafi. Beirut: Dar al-Kutub al Ilmiyyah.
Ibn Qudamah, A.A.b.A., 2000. Al-Mughni. Beirut:‘Alam al-Kutub.
Ibn Rushd, M.b.A.a.-Q., 1985. Bidayat al-Mujtahid wa Nihayat al- Muqtasid. Beirut: Dar- al- Ma‘rifah, 2.
International Shari‘ah Research Academy for Islamic Finance (ISRA), 2017. Third party guarantee without consideration.
Ismail, A.N.B., 2008. Treasury functions and islamic money market. Paper Presented at Seminar Organised by Islamic Banking and Finance Institute, Malaysia. Kuala Lumpur: IBFIM.
Kaleem, A., 2007. Developing Islamic money market 17 September.
Ma‘sum Billah, 2018. Islamic money market, practical paradigm of islamic money market. [Accessed 15th June, 2018].
Ma’sum Billah, 2018. Concept of islamic money market. [Accessed 1st to July 2018].
Malarvizhi, C.A., R. Nahar and S.R. Manzoor, 2018. The strategic performance of Bangladeshi private commercial banks on post implementation relationship marketing. International Journal of Emerging Trends in Social Sciences, 2(1): 28-33. DOI: https://doi.org/10.20448/2001.21.28.33
Malimi, K., 2017. The influence of capital adequacy, profitability, and loan growth on non-performing loans a case of Tanzania banking sector. International Journal of Economics, Business and Management Studies, 4(1): 38-49. DOI: https://doi.org/10.20448/802.41.38.49
Ming, K.F. and S.S.A. Yusoff, 2018. Commercial agreements opposed to public policy: The Malaysian interpretation. International Journal of Asian Social Science, 8(12): 1107-1119. DOI: https://doi.org/10.18488/journal.1.2018.812.1107.1119
Mohammed, Z., 2017. Impact of sexual lifestyle on hormone-related health decline case married teachers. International Journal of Social Sciences Perspectives, 1(1): 1-5. DOI: https://doi.org/10.33094/7.2017.11.1.5
Moussa, A., 2018. Does agricultural sector contribute to the economic growth in the case of the Republic of Benin? Journal of Social Economics Research, 5(2): 85-93. DOI: https://doi.org/10.18488/journal.35.2018.52.85.93
Rafiq, Y.a.-M., 2009. Buhuth fi al-Masarif al-Islamiyyah. Syria: Dar al-Maktabi.
Shari‘ah Advisory Council, 2006. Resolution of the securities commission. Kuala Lumpur: Securities Commission.