Shari'ah compliance of foreign exchange transactions in the islamic banking institutions

The subject of foreign exchange transactions in the Islamic banking institutions with particular focus on shariʻah compliance is the central theme of this research. The issue of shariʻah compliance has always been at the forefront of the Islamic banking and finance intellectual and academic discours...

Full description

Saved in:

Bibliographic Details
Main Author:	Shamsudin, Mohidin Yahya
Format:	Thesis
Language:	English
Published:	2017
Subjects:	BP Islam Bahaism Theosophy, etc
Online Access:	http://eprints.utm.my/id/eprint/79147/1/MohidinYahyaShamsudinPFTI2017.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-utm-ep.79147
record_format	uketd_dc
spelling	my-utm-ep.791472018-09-30T08:23:19Z Shari'ah compliance of foreign exchange transactions in the islamic banking institutions 2017 Shamsudin, Mohidin Yahya BP Islam. Bahaism. Theosophy, etc The subject of foreign exchange transactions in the Islamic banking institutions with particular focus on shariʻah compliance is the central theme of this research. The issue of shariʻah compliance has always been at the forefront of the Islamic banking and finance intellectual and academic discourses. Basically, the conducts of foreign exchange transactions in the conventional as well as the Islamic banking institutions are ostensibly similar. The issue is therefore, what differentiate between these two Forex transactions? That Islamic Forex differs from the conventional Forex and does not contravene the Islamic laws. This study sought to ascertain the permissibility of foreign exchange transactions from the perspective of shariʻah. Next the study examines differences in foreign exchange rulings in the Malaysian Islamic banking against the fatwa issued by other jurisdictions; the extent to which uniformity or differences of fatwa issued by different jurisdictions in Malaysia and the Gulf Cooperation Council countries. The study also aims to reconcile the differences and reach a common understanding to standardise methods of foreign exchange transactions in the Islamic banking institutions. This is to ensure that the Islamic rules on foreign exchange transactions can be institutionalised to become a system that is universal, acceptable and able to meet the needs of the industry players. Employing the methodology used by the International Shariʻah Research Academy (ISRA), the Islamic principles related to Forex trading are examined to determine their sources and evidences and then the fatwa from various jurisdictions are compared to ascertain their similarities and differences. The study found that the shariʻah principle unanimously accepted by all jurisdictions is Bai’ al-Sarf, while other shariʻah principles related to Waád and Tawarruq are to facilitate the execution of Bai’ al-Sarf at the end of the respective transactions. The study has contributed to the Islamic banking literature, particularly on the subject of foreign exchange transactions; that foreign exchange transactions as practiced by the Islamic banking institutions in Malaysia and other countries are legitimate transactions from the perspective of shariʻah. The fact that a truly independent and competent Islamic financial system is needed makes the standardisation of procedures and the establishment of an independent legal framework for Islamic foreign exchange necessary and timely. 2017 Thesis http://eprints.utm.my/id/eprint/79147/ http://eprints.utm.my/id/eprint/79147/1/MohidinYahyaShamsudinPFTI2017.pdf application/pdf en public phd doctoral Universiti Teknologi Malaysia, Faculty of Islamic Civilization Faculty of Islamic Civilization
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	BP Islam Bahaism Theosophy, etc
spellingShingle	BP Islam Bahaism Theosophy, etc Shamsudin, Mohidin Yahya Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
description	The subject of foreign exchange transactions in the Islamic banking institutions with particular focus on shariʻah compliance is the central theme of this research. The issue of shariʻah compliance has always been at the forefront of the Islamic banking and finance intellectual and academic discourses. Basically, the conducts of foreign exchange transactions in the conventional as well as the Islamic banking institutions are ostensibly similar. The issue is therefore, what differentiate between these two Forex transactions? That Islamic Forex differs from the conventional Forex and does not contravene the Islamic laws. This study sought to ascertain the permissibility of foreign exchange transactions from the perspective of shariʻah. Next the study examines differences in foreign exchange rulings in the Malaysian Islamic banking against the fatwa issued by other jurisdictions; the extent to which uniformity or differences of fatwa issued by different jurisdictions in Malaysia and the Gulf Cooperation Council countries. The study also aims to reconcile the differences and reach a common understanding to standardise methods of foreign exchange transactions in the Islamic banking institutions. This is to ensure that the Islamic rules on foreign exchange transactions can be institutionalised to become a system that is universal, acceptable and able to meet the needs of the industry players. Employing the methodology used by the International Shariʻah Research Academy (ISRA), the Islamic principles related to Forex trading are examined to determine their sources and evidences and then the fatwa from various jurisdictions are compared to ascertain their similarities and differences. The study found that the shariʻah principle unanimously accepted by all jurisdictions is Bai’ al-Sarf, while other shariʻah principles related to Waád and Tawarruq are to facilitate the execution of Bai’ al-Sarf at the end of the respective transactions. The study has contributed to the Islamic banking literature, particularly on the subject of foreign exchange transactions; that foreign exchange transactions as practiced by the Islamic banking institutions in Malaysia and other countries are legitimate transactions from the perspective of shariʻah. The fact that a truly independent and competent Islamic financial system is needed makes the standardisation of procedures and the establishment of an independent legal framework for Islamic foreign exchange necessary and timely.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Shamsudin, Mohidin Yahya
author_facet	Shamsudin, Mohidin Yahya
author_sort	Shamsudin, Mohidin Yahya
title	Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
title_short	Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
title_full	Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
title_fullStr	Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
title_full_unstemmed	Shari'ah compliance of foreign exchange transactions in the islamic banking institutions
title_sort	shari'ah compliance of foreign exchange transactions in the islamic banking institutions
granting_institution	Universiti Teknologi Malaysia, Faculty of Islamic Civilization
granting_department	Faculty of Islamic Civilization
publishDate	2017
url	http://eprints.utm.my/id/eprint/79147/1/MohidinYahyaShamsudinPFTI2017.pdf
_version_	1747818157824802816

Shari'ah compliance of foreign exchange transactions in the islamic banking institutions

Similar Items