Imam Sadiq University "Islamic Finance Research" (IFR) 2251-8290 6 1 2016 10 22 Application of Islamic Treasury Bills on the Interbank Market in Iran Application of Islamic Treasury Bills on the Interbank Market in Iran 33 62 1917 10.30497/ifr.2016.1917 FA Sayyed Saeed Shamsinajad Assistant Professor, Hazrat Masoumeh University, Qom, Iran 0009-0009-4636-9376 Mohammad Talebi Assistant Professor at Department of Finance, Faculty of Islamic Education and Management, Imam Sadiq University, Tehran, Iran. 0009-0009-4780-6793 Journal Article 2016 02 13 After exceeding eight years from its establishment, and despite its considerable size of dealings, Iran's Rial Interbank Market has not yet managed to develop its position in the state’s money market through creation of necessary diversities in transactional mechanisms. Application of treasury bills as a short-term monetary instrument is globally fostered. After adoption of sale of debt in the state’s monetary system, application of Islamic treasury bills was lodged in the 2014 Budget Act. Supplying these bills in the capital market one year later could result in formation and development of a secondary market for such bills. The main question of this research is posed as “How could Islamic treasury bills be used to promote the efficiency of Iran's Rial Interbank Market?” By explicating the performance and recognizing Iran's Interbank Market shortcomings, the present article intends to examine the application of Islamic treasury bills as a short-term monetary instrument in Iran's Interbank Market. Findings of this study achieved through a descriptive-analytical methodology by referring to Shiite jurisprudence and finance texts are expressive of the fact that Islamic treasury bills are capable of being applied in Iran's Rial Interbank Market. After exceeding eight years from its establishment, and despite its considerable size of dealings, Iran's Rial Interbank Market has not yet managed to develop its position in the state’s money market through creation of necessary diversities in transactional mechanisms. Application of treasury bills as a short-term monetary instrument is globally fostered. After adoption of sale of debt in the state’s monetary system, application of Islamic treasury bills was lodged in the 2014 Budget Act. Supplying these bills in the capital market one year later could result in formation and development of a secondary market for such bills. The main question of this research is posed as “How could Islamic treasury bills be used to promote the efficiency of Iran's Rial Interbank Market?” By explicating the performance and recognizing Iran's Interbank Market shortcomings, the present article intends to examine the application of Islamic treasury bills as a short-term monetary instrument in Iran's Interbank Market. Findings of this study achieved through a descriptive-analytical methodology by referring to Shiite jurisprudence and finance texts are expressive of the fact that Islamic treasury bills are capable of being applied in Iran's Rial Interbank Market. https://ifr.isu.ac.ir/article_1917_cb79f8fa58b91d3af6c9c991f63962d3.pdf