Deal to set up Islamic liquidity managament unit
Kuala Lumpur, October 27, 2010
Articles of agreement for the establishment of the International Islamic liquidity management corporation (IILM) was signed at a major event in Kuala Lumpur recently.
Eleven central banks and two multilateral organisations participated in the International Islamic liquidity management corporation initiative facilitated by the Islamic financial services board (IFSB).
The agreement marked their collaboration in a landmark global initiative that is aimed to assist institutions offering Islamic financial services in addressing their liquidity management in an efficient and effective manner. In addition, the initiative would facilitate greater investment flows for the Islamic financial services industry.
The IILM will issue high quality Shari`ah-compliant financial instruments at both the national level and across borders, in an integrated manner, thereby enhancing the soundness and stability of the jurisdictions in which they operate, said a statement.
The signatories of the IILM articles of agreement are governors and their representatives from the central banks or monetary agencies of Indonesia, Iran, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Saudi Arabia, Sudan, Turkey and the UAE. The Islamic development bank and the Islamic corporation for the development of the private sector are the multilateral organisations participating in the initiative.
Malaysia has been selected as the host country of the IILM. - TradeArabia News Service