IslamicFinance.de

The World Gold Council (WGC) and the International Islamic Financial Market (IIFM) plan to develop a series of standard templates for sharia-compliant gold contracts. Gold had traditionally been classified as a currency in Islamic finance, but new guidance has opened the door for a wider range of products. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) developed a sharia standard for gold in 2016. The proposed contract templates from IIFM would add to those efforts by standardising the operational aspects of gold transactions. Natalie Dempster, managing director of central banks at the WGC, said the new standards would include physical allocation of gold, confirmation of ownership and spot transactions. Allocated gold agreements, consignment agreements, swap product confirmations and other gold-based products were also discussed at the consultation meeting, which was hosted by Borsa Istanbul, Turkey.