Money from Islamic perspective: its purpose and time value

Money from Islamic perspective: its purpose and time value

Money from Islamic commercial law perspective is essentially a medium of exchange and not an ordinary commodity that can be freely traded for profit. This paper will explore the nature of money in Islamic law and its function. A number of guiding principles in dealing with money will be discussed. N...

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Bibliographic Details
Main Author: Abdul Aziz, Akhtarzaitie
Other Authors: Soualhi, Younes
Format: Book Chapter
Language:English
Published: IIUM Institute of Islamic Banking and Finance 2009
Subjects:
HG201 Money
KBP1 Islamic law.Shariah.Fiqh
Online Access:http://irep.iium.edu.my/7575/
http://irep.iium.edu.my/7575/1/Chapter_10.pdf
id iium-7575
recordtype eprints
spelling iium-75752011-11-23T11:28:42Z http://irep.iium.edu.my/7575/ Money from Islamic perspective: its purpose and time value Abdul Aziz, Akhtarzaitie HG201 Money KBP1 Islamic law.Shariah.Fiqh Money from Islamic commercial law perspective is essentially a medium of exchange and not an ordinary commodity that can be freely traded for profit. This paper will explore the nature of money in Islamic law and its function. A number of guiding principles in dealing with money will be discussed. Next the paper will also examine one of very important issues in current Islamic transaction which is the issue of the time value of money. The main issue is whether in Islam, where money is not a commodity which can be traded freely at any price, necessarily means that there is no weight or value to be given to time factor in economic and financial transactions. Does time value of money means the adoption of Riba as it is practiced by the conventional banking transaction ? An important issue which arises in the case of sale based financing and it's pricing whereby price to be paid in future is higher than spot price relates to the issue of positive time preference of money. This paper shows that Islam differentiates between cash advance on interest and commodity sold on mark-up basis, particularly Murabahah though both involve time element and positive time preference of money. IIUM Institute of Islamic Banking and Finance Soualhi, Younes Mydin Meera, Ahamed Kameel 2009 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/7575/1/Chapter_10.pdf Abdul Aziz, Akhtarzaitie (2009) Money from Islamic perspective: its purpose and time value. In: IIiBF Series in Islamic banking and finance: 1. IIUM Institute of Islamic Banking and Finance, Kuala Lumpur, pp. 291-304. ISBN 9789834456801
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG201 Money
KBP1 Islamic law.Shariah.Fiqh
spellingShingle HG201 Money
KBP1 Islamic law.Shariah.Fiqh
Abdul Aziz, Akhtarzaitie
Money from Islamic perspective: its purpose and time value
description Money from Islamic commercial law perspective is essentially a medium of exchange and not an ordinary commodity that can be freely traded for profit. This paper will explore the nature of money in Islamic law and its function. A number of guiding principles in dealing with money will be discussed. Next the paper will also examine one of very important issues in current Islamic transaction which is the issue of the time value of money. The main issue is whether in Islam, where money is not a commodity which can be traded freely at any price, necessarily means that there is no weight or value to be given to time factor in economic and financial transactions. Does time value of money means the adoption of Riba as it is practiced by the conventional banking transaction ? An important issue which arises in the case of sale based financing and it's pricing whereby price to be paid in future is higher than spot price relates to the issue of positive time preference of money. This paper shows that Islam differentiates between cash advance on interest and commodity sold on mark-up basis, particularly Murabahah though both involve time element and positive time preference of money.
author2 Soualhi, Younes
author_facet Soualhi, Younes
Abdul Aziz, Akhtarzaitie
format Book Chapter
author Abdul Aziz, Akhtarzaitie
author_sort Abdul Aziz, Akhtarzaitie
title Money from Islamic perspective: its purpose and time value
title_short Money from Islamic perspective: its purpose and time value
title_full Money from Islamic perspective: its purpose and time value
title_fullStr Money from Islamic perspective: its purpose and time value
title_full_unstemmed Money from Islamic perspective: its purpose and time value
title_sort money from islamic perspective: its purpose and time value
publisher IIUM Institute of Islamic Banking and Finance
publishDate 2009
url http://irep.iium.edu.my/7575/
http://irep.iium.edu.my/7575/1/Chapter_10.pdf
first_indexed 2023-09-18T20:17:02Z
last_indexed 2023-09-18T20:17:02Z
_version_ 1777407856761372672

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