Central Bank sharia authority clears $2,000 currency exchange and mudaraba deposit certificates
The Central Sharia Supervisory Authority at the Central Bank of Libya has clarified that two banking practices the $2,000 cap on personal foreign-currency exchange and unrestricted mudaraba investment deposit certificates are free of sharia violations.
On currency exchange, the Authority said reserving foreign currency does not constitute a binding promise or deferred-sale contract, since it fixes no price, transfers no ownership, and leaves either party free to cancel before completing the exchange, citing classical fiqh rulings and Islamic Fiqh Academy resolutions on currency trading.
On the mudaraba certificates, the Authority said the product went through a six-stage process involving the Central Bank's technical departments, international experts including the Islamic Development Bank, and rigorous sharia review, confirming it meets mudaraba requirements: capital is not guaranteed, profit reflects actually realised returns, and any advertised rate is indicative rather than a guaranteed return.
The statement, issued in Tripoli on 20 September, said the Authority's approval represents the binding institutional sharia reference for Central Bank-issued products under Libya's banking law.
