Salamu alaykum,
I’m working as a broker in commodity trading (oil and gas, gold).
One of my client is in need of a financial instrument to start dealing with the commodity provider. The only accepted instrument is an SBLC. I have the opportunity to request the SBLC to a partner to help my client doing business with his provider.
When I realized that the SBLC contains riba I have stopped everything as I’m the one facilitating the process.
What is the ruling on dealing with SBLC in oil and gas and gold trading for all parties (seller, buyer and broker) ?
What is the ruling in a deal where the buyer has already an SBLC knowing that my role as broker is to find sellers in line with what the buyer is looking for ?
Any advice on top AAA banks providing similar instruments for commodity trading ?
Last point: one of my client (Muslim) have important stock of Ultrafine copper powder. It can be used as a collateral with banks to get access to instrument such as SBLCs and cash for trading under certain conditions. Are there any Muslim institutions to accept these kind of collaterals for the same purpose ?
May Allah help us, guide us towards what benefits us in this world and the next.