Islamic finance can help exchange companies

The Post: By regulating Exchange Companies according to the principles of Islamic finance in Pakistan, not only the business of Currency Exchange companies will be accelerated but also segment of economy will be regulated in a better way enabling to avoid any unpleasant incidents in future.

These points were expressed by The CEO of Al-Huda Centre of Islamic Banking, Muhammad Zubair Mughal in a Discussion on the topic of "Islamic Finance & Exchange Companies".

He said that in Islamic Finance the principles of 'Bai Surf, Sharai'Hawalah & Suftaja" are available which can be utilized for development of appropriate products by the exchange companies after better research. He said that "Bai Surf" is a relevant method of buying & Selling, in Islam this is a principle of Exchange in between Gold & Silver. Because in Arab era Gold & Silver were used as Durham & Dinar (Currency) & in Islam principles are available for their exchange.

So we can use these principles for the current era's currency exchange. He told about "Suftaja" that in Arab era these were used like Traveler Cheques, which is a kind of currency exchange instrument. When business delegates come to Arab for Buying and Selling then they can used this document, which becomes the reason of currency exchange. While talking about "Sharai' Hawalah", he said that in Hawalah one person's liability can be transfer to other person.

And exchange companies can get benefit from these Sharai' principles about money transfer. And through these Sharai; Principles today our exchange companies can run their businesses according to Sharia' principle.

Further on, Mr. Zubair indicated that Islam is a complete code of life, wherein solution to every economic and financial problem is available. By using these, we can solve many economic and financial problems in the light of Shariah.