It hasn’t garnered much attention, but the Indonesian government failed to place a recent sukuk (Islamic bond) issue, supposedly because of high yields. There is no further explanation as to what this means.

Note that the term “yield” is used in association with sukuk. This is symbolic of the fact that sukuk are really concoctions designed to replicate actual bonds without disturbing the Shariah scholars with things like “interest.” This had been controversial when prominent Shariah scholar Mufti Taqi Usmani declared most sukuk haram (or not shariah-compliant) a couple of years back. But a suitable amount of Saudi cash evidently convinced Usmani to change his fatwa…


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