THE ISLAMIC VIEW ON MONEY AND ITS IMPLICATION FOR FINANCIAL INSTRUMENTS

The backdrop of Islamic finance in the existing conventional framework has great influence on Islamic financial operations and instruments. Despite the advantage of becoming the most preferred products, a greater disadvantage is foreseen, alarming the whole system. Assimilation of ‘Islam’ into the financial system needs absolute integration in conceptual foundations and applications. The gap in Islamisation of the financial system has not only been observed in the misuse of terminology, but extends throughout the overall system. The central issues in this misconception are the functions and applications of money.