05-24-2007, 10:55 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Karachi King</i>
<br />thanx derivativetrader. actually we are supposed to give suggestions to Islamic Banks to use Gold/Silver/Oil Prices as a substitute of KIBOR. so to be specific, i need arguements in favour &/or against using these comodity rates as a substitute of KIBOR in Islamic Banking.
it will be very helpful & your effor will be highly appreciated, thanx again.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I'm still waiting for an answer from my friend. However, I would assume that gold/silver and oil prices would be linked to LIBOR/KIBOR. For instance, since gold is denominated in USD and whenever we see a depreciation in USD, the gold/oil prices shoot up, and according to interest rate parity, a fall in LIBOR would result is the depreciation of USD. So, I guess if you use gold or oil as substitutes for KIBOR/LIBOR, then it would be ambigious. What do you think?
DT
<br />thanx derivativetrader. actually we are supposed to give suggestions to Islamic Banks to use Gold/Silver/Oil Prices as a substitute of KIBOR. so to be specific, i need arguements in favour &/or against using these comodity rates as a substitute of KIBOR in Islamic Banking.
it will be very helpful & your effor will be highly appreciated, thanx again.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I'm still waiting for an answer from my friend. However, I would assume that gold/silver and oil prices would be linked to LIBOR/KIBOR. For instance, since gold is denominated in USD and whenever we see a depreciation in USD, the gold/oil prices shoot up, and according to interest rate parity, a fall in LIBOR would result is the depreciation of USD. So, I guess if you use gold or oil as substitutes for KIBOR/LIBOR, then it would be ambigious. What do you think?
DT
