By Dr. Hafiza Harun
Abstract:
The uniqueness of Islamic
economics system lies
on its underlying principles and philosophies. Islamic principles stand as the guiding rules in ensuring all mechanisms and relevant
activities of economics are in compliance with Shariah. Undoubtedly, the creation of money requires for a meticulous process
as the observation of any elements of non-compliance with Shariah
must be put in place. The
involvement of
ethical foundation is also exclusive and worth to be emphasized as a reflection of Islam and
a perfect
religion. By focusing to
Malaysian monetary policy and
economics jurisdiction, indeed, the role
of regulator is very crucial
and being stressed in
this discussion. This research paper applies the
literature review based
methodology that deliberates
the money status
in Islam, Islamic
monetary policy and
the significant procedures and financial
regulations for monetary policy in Malaysia. Developing a dedicated Islamic monetary policy
has been progressing through continuous effort in embarking in-depth research on this
area besides the
existence of Islamic
Interbank Money Market
which focuses on
absorbing surplus liquidity.
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