Imam Sadiq University "Islamic Finance Research" (IFR) 2251-8290 2 2 2013 04 21 Imamiah Jurisprudence Perspectives on Commodity Swaps Imamiah Jurisprudence Perspectives on Commodity Swaps 25 54 1642 10.30497/ifr.2013.1642 FA Sayyed Abbas Mousavian Professor of the Institute of Islamic Culture and Thought Hossein Tamalloki Bachelor's degree in Financial Management from Imam Sadiq University Journal Article 2015 08 23 Nowadays, with the development of financial institutions and the extension of business scope, risk management has found major significance in economic studies. Today, various approaches and tools are designed to manage and reduce different types of risks. Commodity swaps, which is considered as one type of swaps, have a critical role in managing and hedging against the risk of basic commodities such as oil, petrochemical products, energy, precious metals and agricultural products. This article, besides introducing this financial tool by using a juridical approach, tries to investigate the possibility of applying this contract from the perspective of Imamiah jurisprudence and examines the possibility of the adaptation of this tool to the common Islamic contracts. One of the most useful tools in managing risks is swap contracts in which a set of fixed cash flows is exchanged with a set of floating cash flows. In this study, the possibility of adaptation of commodity swaps to "Bai'al-dain bil dain", "Ba'i al-Kali bil Kali" and "Solh dain bil dain" has been examined and the possibility of application of commodity swaps in "Solh dain bil dain" is confirmed. Due to the doubt of being Gharar and Riba, it has been concluded that the common western commodity swaps are not compatible and adaptable to Imamiah jurisprudence. Finally, it has been mentioned that the possible solution for resolving this doubt is to exchange the commodity in the settlement date during the contract period. Doing so, commodity swaps have the whole general conditions of a true and correct contract. Nowadays, with the development of financial institutions and the extension of business scope, risk management has found major significance in economic studies. Today, various approaches and tools are designed to manage and reduce different types of risks. Commodity swaps, which is considered as one type of swaps, have a critical role in managing and hedging against the risk of basic commodities such as oil, petrochemical products, energy, precious metals and agricultural products. This article, besides introducing this financial tool by using a juridical approach, tries to investigate the possibility of applying this contract from the perspective of Imamiah jurisprudence and examines the possibility of the adaptation of this tool to the common Islamic contracts. One of the most useful tools in managing risks is swap contracts in which a set of fixed cash flows is exchanged with a set of floating cash flows. In this study, the possibility of adaptation of commodity swaps to "Bai'al-dain bil dain", "Ba'i al-Kali bil Kali" and "Solh dain bil dain" has been examined and the possibility of application of commodity swaps in "Solh dain bil dain" is confirmed. Due to the doubt of being Gharar and Riba, it has been concluded that the common western commodity swaps are not compatible and adaptable to Imamiah jurisprudence. Finally, it has been mentioned that the possible solution for resolving this doubt is to exchange the commodity in the settlement date during the contract period. Doing so, commodity swaps have the whole general conditions of a true and correct contract.

https://ifr.isu.ac.ir/article_1642_81c650caac28cdefce4de5ddc18befa0.pdf