null IIFM launches practical Shari’ah-Compliant solutions for new benchmark Risk-Free Rate (RFR)
IIFM launches practical Shari’ah-Compliant solutions for new benchmark Risk-Free Rate (RFR)
5 Oct 2021 | Tuesday Source : IIFM
Islamic finance industry’s leading standard-setting body, the International Islamic Financial Market (IIFM), today announced the approval of its Shari’ah Board’s RFR implementation related Compliant Standard Structuring Solutions for Murabahah and Ijarah transactions.
The global benchmark rate reform is a significant regulatory driven development that also has consequences for Islamic financial transactions. Globally, work on phasing out of London Inter-Bank Offered Rate (LIBOR) and transition to Risk-Free Rates (RFR’s) or Alternative Benchmark Rates is now approaching discontinuation date of 31 December 2021 for currencies such as USD, EUR, GBP, CHF, JPY and certain other hard currencies used in the domestic as well as cross border trades.
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