More sharia-compliant instruments would aid liquidity management, IMF paper argues

Research focuses on Gulf Cooperation Council members

A lack of sharia-compliant financial instruments has led Islamic banks to hold a "significant amount" of cash reserves, making it harder for central banks to conduct monetary operations with them, according a working paper published by the International Monetary Fund.

"Active efforts are needed to develop sharia-compliant instruments to improve the efficiency of monetary operations," Ritu Basu, Ananthakrishnan Prasad and Sergio Rodriguez say, in Monetary operations and Islamic banking in the GCC

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: