Build a discussion on Islamic Investment Markets and Products (Islamic Perspective: Money , Capital and Foreign Exchange Markets)

ISLAMIC INVESTMENT MARKETS:

1. ISLAMIC MONEY MARKET: The Islamic money market was introduced by Bank Negara Malaysia. The Islamic money market promotes comprehensive Islamic Banking System. It is undertaken to promote more players in the Islamic Banking System. It has three components namely interbank deposit fascility, trading platform and Islamic Cheque clearing system. It is based on profit sharing principle risk shared by Bank and customer leads to equitable distribution of income and wealth.

2. ISLAMIC CAPITAL MARKET: It is the market where sharia- compliant financial assets are transacted. It works parallel to the conventional market. It helps investors find sharia- compliant investment opportunities. It provides a balance in Islamic banking system for their expansion and helps deepening the Islamic financial market. The current growth is between 12%-15%

3. ISLAMIC FOREIGN EXCHANGE MARKET: It is a contract designed as a hedging mechanism. It minimises market participants exposure to volatile and fluctuating market currency exchanges. There are 3 main instruments of Islamic swaps namely, FX Swaps, Criss Currency Swaps and Profit Rate swaps.