Institute of Islamic Banking

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Browsing Institute of Islamic Banking by Author "Hassan Bukhari, Muhammad"

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    Salam transaction in currencies
    (University of Management and Technology, 2014) Hassan Bukhari, Muhammad
    The main purpose of the study is to analyse terms and concepts of currency salam product according to shariah ruling and the Islamic scholars point of view against and in favour of the currency salam transaction. The practical procedure of currency salam transaction in Islmaic banking is also addressed. To address the first two objectives the literature is thoroughly referred and to cater the last objective 60 questionnaires were distributed among bankers of Islamic banks who deal in currency exchange transactions, out of which 52 were returned and usable. To justify or reject the salam transaction, all depends upon the status of money, bai-sarf and transaction of salam and its conditions in front of Islamic and fiqh scholars which will be analysed thoroughly. The content and descriptive analysis techniques were employed to analyse the data. The SPSS software is used to anlayse the data collected by questionnaire. The results suggest that salam transaction in currencies of same country is not allowed/prohibited and salam transaction in currencies of different countries is permissible. The results indicate that currency salam transaction is allowed and most of the bankers believe that practically this transaction is in accordance with the laws of Shariah. The study supports the literature and according to data almost 71% respondents of Islamic banks believe that salam transaction is practically implemented in selected Islamic banks. As per author knowledge, this proves to be a pioneer study in this area of research in Pakistan. Hence, it is recommended the future studies are recommended firstly to take shariah scholars point of view on the procedure of currency salam transaction provided by the selected bankers, secondly it should be extended to other banks of different countries as well.