RISKS AND REMEDY IN ISLAMIC AND CONVENTIONAL LETTER OF CREDIT: JORDANIAN PRACTICES

  • Emad Mohammad Al amaren UUM-Malaysia
  • Mohd Zakhiri bin Md. Nor UUM College of Law, Government and International Studies, Universiti Utara Malaysia.
  • Che Thalbi Bt Md. Ismail UUM College of Law, Government and International Studies, Universiti Utara Malaysia.

Abstract

International trade and the movement of goods between parties living in different countries have spread in the last century and have become one of the fundamental features of the current trade. This proliferation of international contracts, of course, has its own problems. The problems of external Islamic or conventional letters of credit affect export, since letters of credit are considered a valuable tool used in financing foreign trade operations. Therefore, the problems faced by exporters in letter of credit reflect on and impact trade in general. Thus, the fewer the credit problems are, the more active foreign trade especially export will be. But if problems are relatively large, exports will contract. This study attempts to identify the problems of external and internal letters of credit facing the Jordanian traders and Jordanian Islamic and conventional banks, and to analyze them in an organized scientific manner, then proposing the appropriate recommendations to address these problems.

Published
2020-07-11
How to Cite
AL AMAREN, Emad Mohammad; NOR, Mohd Zakhiri bin Md.; ISMAIL, Che Thalbi Bt Md.. RISKS AND REMEDY IN ISLAMIC AND CONVENTIONAL LETTER OF CREDIT: JORDANIAN PRACTICES. International Journal of Islamic Economics, [S.l.], v. 2, n. 01, p. 54-68, july 2020. ISSN 2686-2166. Available at: <https://e-journal.metrouniv.ac.id/index.php/IJIE/article/view/2065>. Date accessed: 21 jan. 2021. doi: https://doi.org/10.32332/ijie.v2i01.2065.

Most read articles by the same author(s)

Obs.: This plugin requires at least one statistics/report plugin to be enabled. If your statistics plugins provide more than one metric then please also select a main metric on the admin's site settings page and/or on the journal manager's settings pages.