The Islamic Bank of Asia, a unit of DBS Bank, has launched a US-dollar Islamic Placement, its first liquidity product.

The USD Islamic Placement is similar to a conventional fixed deposit, except it is based on the Shariah principle of Murabaha, which refers to a cost plus profit sale contract.

The USD Islamic Placement has a minimum placement amount of US$500,000 and has tenures of either three months or six months.

Vince Cook, CEO of I-B Asia, says the product gives customers the opportunity to participate in the growing phenomenon that is Islamic banking.

He hopes that the placement will help familiarise people with Shariah compliant products and create greater acceptance of Islamic banking in the marketplace.

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