Time to Slash Down Industry Over-reliance on Commodity Murabahah
Jalal Khan Momand
In an effort to reduce the industry’s reliance on a limited range of Shariah compliant instruments, Jalal Khan Momand discusses the IIFM’s new risk-sharing Interbank Unrestricted Master Investment Wakalah Agreement, which the IDB hopes will meet the deficiency of instruments in the investable Islamic liquidity management market.
The international standard-setting non-profit Islamic finance industry body, the International Islamic Financial Market (IIFM), of which the IDB is a founding member, recently announced the launch of the IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement (IUMWA) at the IIFM Industry Seminar recently held in Singapore. This aspirant global standard document is supplemented with a unique feature of an Operational Guidance Memorandum that explains how the standard document is to be used and comes with additional comprehensive recommendations.