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Thus entrepreneurs will find it less attractive and competitive for using their trade facilities where their goods will say arrive in 3 months but wishes to hedge forward their foreign currency .
Interbank Money Market:
The difficulty in developing short term funding based on Profit and Loss Sharing method which is in compliance to Shariah hinders the Islamic banks in managing their liquidity thus increasing their exposure to liquidity shock such as in the case of the current financial credit crunch...
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Thus entrepreneurs will find it less attractive and competitive for using their trade facilities where their goods will say arrive in 3 months but wishes to hedge forward their foreign currency .
Interbank Money Market:
The difficulty in developing short term funding based on Profit and Loss Sharing method which is in compliance to Shariah hinders the Islamic banks in managing their liquidity thus increasing their exposure to liquidity shock such as in the case of the current financial credit crunch...
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