Resolutions of 41st Session of Sharia Council
Tuesday, 10 August 2021 12:23 CBI sharia council repo 525
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The purchase of Islamic financial bonds by the Central Bank through repo in accordance with sharia without affecting the reserves of the banking network was reviewed.

The issue of "purchase of Islamic financial bonds by the Central Bank through the repurchase agreement instrument (repo) in accordance with Sharia without affecting the reserves of the banking network" was raised in the forty-first session of the Sharia Council of the Central Bank.


Thus it is permissible to add a condition for the "Sharia-compliant repurchase agreement" while blocking the funds, subject to the following conditions:


1. The use of Sharia-compliant repurchase agreements with freezing funds between the central bank and financial institutions (banks, non-bank credit institutions, investment funds, insurance companies, financing companies and other financial institutions) is allowed.
2. It is necessary to explicitly include the condition for the blocking of funds for a certain period in concluded contracts (the period of repurchase agreement which is sharia-compliant).
3- In the proposed method of determining the price of buying and selling options in a way that creates an incentive for financial institutions to sell bonds to the Central Bank, it is permitted.

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