Islamic Money Market Is Expected To Strengthen Global Financial System Stability

Illustration (Photo: Doc. Antara)

JAKARTA - The governors of the world's central banks agreed that the Islamic financial market is expected to play a bigger role in supporting global Financial System Stability (SSK) in the face of global uncertainty due to the normalization of monetary policy in major countries, such as the United States.

Governor of Bank Indonesia (BI) Perry Warjiyo said, in order to achieve this goal, the main focus of attention is the development of short-term Islamic money market instruments and regulatory standards for Islamic financial institutions.

"The development of the money market is very important with the increasing number of countries issuing long-term sukuk, including Indonesia, which is the largest sukuk issuer in the world," he said in a press statement quoted on Sunday, June 12.

According to Perry, a comprehensive transformation of the current Islamic financial system is needed to better meet the needs of other countries.

"It is important to be able to cover many things, but the most important thing is how to continue to develop capacity through research, good implementation standards, effectiveness, and also the sustainability of the Islamic financial market itself," he said.

Furthermore, the Governor of Bank Indonesia emphasized the importance of support from the financial sector, including Islamic financing as an alternative financing model for accelerating global economic recovery and green financing.

"Indonesia is one of the countries that has succeeded in developing alternative Islamic financing that is used for large and small projects including the private sector and is also the largest green sukuk issuer in the world," concluded Perry.