Dubai's government-owned commodities centre is launching a sharia-compliant commodity trading platform which Islamic banks in the Gulf could use to manage their short-term fund flows.
The Tradeflow platform developed by the Dubai Multi Commodities Centre (DMCC) allows trading of warehouse receipts, which represent ownership of commodities stored at warehouses.
Islamic banks cannot use conventional interbank money markets because of Islam's ban on interest, so they have struggled with a shortage of instruments to manage liquidity.
The DMCC hopes its platform can be part of the solution to this problem, since warehouse receipts are based on actual trading of physical assets, an important principle in Islamic finance.
No comments:
Post a Comment