IMF paper urges central banks to adopt sharia-compliant facilities
Islamic banks lack access to central bank facilities in many countries
Central banks in countries with growing Islamic finance sectors ought to adapt monetary policy instruments to better achieve sharia-compliance, according to a working paper published on June 2 by the IMF.
An overview of Islamic finance by Mumtaz Hussain, Asghar Shahmoradi and Rima Turk examines the challenges surrounding the rapid rise of Islamic finance, which has grown around 20% each year over the past decade.
Currently only Iran and Sudan have fully sharia-complaint banking sectors, and
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