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Islamic Finance


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Mithli


A category of mal which encompasses commodities usually sold and bought by weight capacity, or measure such as gold, rice, wheat, oil, etc. They are articles whose value (and form) is identical or very similar to each other’s and can therefore be replaced by counterparts of the same value and form. Mithli (singular of mithliyyat) is an asset whose units have similar types, kind and value, and so they are similar to each other. A mithli item is one that has standard replacements in the market whose prices are identical or very close- i.e., do not materially differ from each other (thanks to perfect or partial likeness).

Mithli (مثلي) is Arabic for a fungible good.


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