Al-muraj ah al-Islamiyah


Dictionary term

Definition of "Al-muraj ah al-Islamiyah"

Lit: Islamic swap. Tech: A financial technique followed by Islamic banks in which two banks agree to swap with each other two deposits denominated in different currencies for a fixed period but on interest-free basis. During the period they are holding these deposits, each one of them is free to invest it and earn a return on it. Any profit or loss accrues to the party investing. After the expiry of the agreed period, the original swaps are reversed.


Create Your FREE Account…

IslamicBanker helps professionals navigate Islamic markets by providing powerful insights, analytics and collaboration tools.