WASET
	%0 Journal Article
	%A Aqeel Akhtar
	%D 2015
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 108, 2015
	%T Investigation of Compliance of the Prevailing Import Murabah'a to Sharia
	%U https://publications.waset.org/pdf/10003272
	%V 108
	%X One of prevailing modes of finance in emerging
Islamic banking system is Murabah’a. It means a financial dealing or
transaction in which seller tells cost of the goods to be sold to buyer.
Otherwise, the transaction would become invalid. In this mainstream,
import Murabah’a transaction is divergent in such a way that the cost
is not recognized and identified due to execution of import
transaction in foreign currency i.e. US Dollar and the next transaction
of Murabaha’a with the client is executed in local currency. Since this
transaction is executed in dual currency i.e. bank pays supplier in
foreign currency and executes Murabah’a with its client in local
currency and it is not allowed in according to Islamic Injunctions as
mentioned in hadith narrated by Hazrat Ibn-e-Umar (May Allah be
pleased with them) used to sell his camels with Dirhams and take
dinars instead and vice versa. Upon revealing before the Prophet
(Peace be upon him), he was advised that it must not be contingent in
the agreement and the ready rate would be applied and possession of
one of the consideration is compulsory. The solution in this regard is
that the import Murabah’a transaction should be in single currency
However, other currency can be paid in payment at the time of
payment in a very indispensable situation provided that ready rate
would be applied. Moreover, some of other solutions have also been
given in this regard.
	%P 4310 - 4313