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Islamic Finance




Mithliat


Arabic (مثليات) for fungibles; items that are mutually interchangeable, i.e., the units of which are identical (in specifications/ features), and if destructed will be guaranteed (replaced by the party who has caused destruction) by other identical units without consideration to their value. In other words, fungibles are goods that have common features such that they are very similar or identical (i.e., do not differ significantly). Fungibles are typically are sold by measure, number or weight.

A fungible good (say a Toyota car of a given model and year of production) can be replaced by any other good of the same type (another Toyota car of the same model and year of production) in the event of destruction, without having to assess the value of the item destroyed or the one replacing it. Further examples of fungibles include wheat, dates, oil, etc.



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The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
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