Inflation swaps, instruments to hedge inflation risk (review of compliance with Islamic finance)

Subject Areas : Financial Knowledge of Securities Analysis

Ali Rahneshin ¹

1 - PhD student of Financial Management, Imam Sadiq University

Received: 2014-04-04 Accepted : 2014-05-22 Published : 2015-10-02

Keywords: Inflation swaps, Inflation derivatives, Islamic financial instruments,

Abstract :

Swaps are most important derivatives in the world's derivatives market. Inflation swaps due to inflationary conditions in Iran can be useful instruments to hedge inflation for business parties. Inflation swaps are some kind of future cash flow swaps and in islamic finance are with doubts of gharar, usury and gambling. Solution to this problem is the use of real assets in cash flow. Periodic murabahah contract is an alternative that used by Muslim scholars for interest rate swap. This contract can also be considered an alternative to the inflation swaps. In this article to improve this solution, we propose the combinated contract of Murabahah and Leasing. This method have no any doubts and is an efficient method to create different types of future cash flow swaps such as inflation swaps.

References:

فهرست منابع
 معصومی نیا، علی؛ الهی، مهدی؛ 1930 (، امکان (
سنجی فقهی استفاده از سواپ کالا در بازارهای
. مالی ایران، اقتصاد اسلامی، شماره 44
 ،) موسویان، سید عباس، موسوی بیوکی، ) 1988
مدیریت ریسک اعتباری در بانکداری اسلامی از
طریب سوآپ نکول اعتباری، اقتصاد اسلامی،
. شماره 99
 موسویان، سید عباس، موسوی بیوکی، سید
محمد مهدی، ) 1983 (، بررسی امکان استفاده از
سوآپ بازده کل جهت مدیریت ریسک اعتباری
. در بانکداری اسلامی، اقتصاد اسلامی، شماره 97
اوراق تاخت تورم، ابزار محافظت در مقابل ریسک تورم
فصلنامه علمی پژوهشی دانش مالی تحلیل اوراق بهادار / شماره بیست و هفتم 77
 م وس ویان ، سیدع باس ، ) 1987 (، ابزارهای مالی
اسلامی )صکو (، تهران: سازمان انتشارات
پژوهشگاه فرهنگ و اندیشه اسلامی .
 Benaben Brice; (2005). "Inflation-Linked Products: A Guide for Asset and Liability Managers" Risk Books, ISBN 1-904339-60-3.
 Deacon, Mark, Derry Andrew, and Mirfendereski Dariush, (2004); Inflation-Indexed Securities: Bonds, Swaps, and Other Derivatives (2nd edition) Wiley Finance. ISBN 0-470-86812-0.
 Damiano Brigo, and Mercurio Fabio, (2006); "Interest Rate Models -- Theory and Practice, with Smile, Inflation, and Credit" (2nd edition) Springer Finance. ISBN 3-540-22149-2.
 Canty, Paul and Markus Heider, (2012); "Inflation Markets: A Comprehensive and Cohesive Guide" Risk Books. ISBN 9781906348755.
 Ramasamy Ravindran, Munusamy Sahnmugam, Mohd Helmi Mohd Hanif, (April 2011), Basic Pricing Methodology For Islamic Profit Rate Swap, Global Journal of Management and Business Research, Volume 11 Issue 5 Version 1.0
 Yankson Sidney, (2011) Derivatives in Islamic Finance - A Case for Interest Rate Swaps, Opportunities in Islamic Finance - Unconventional Answers to the Credit Crisis, CPI Financial.
 Hughston L. P, (May 1998), Inflation Derivatives, King's College London, Working paper.
 J.P. Morgan, Spotlight on: Inflation derivatives, www.jpmorgan.com.
 Zahan Muslima, Kenett Ron S. (2012), Heding Instruments in conventional and Islamic Finance, EJASA:DSS. Vol 3, Issue 1, 59 – 74
 Daud Bakar Mohd, Islamic derivatives solutions: Methodology, Issues and Product Structuring with special reference to profit rate SWAP and forward forex, International Institute of Islamic Finance.