Characteristics of Monetary Policy in Muqāwamah economics

One of the tasks of central bank is to conduct monetary policy to achieve economic stability. Expansionary and anti-inflationary policies of traditional banking are conducted using tools such as open market operations, quasi-market operations, discount rate and legal reserve rates. In this context, the question arises how these policies can serve to enhance the economic stability of the country and achieve the goals of the Muqāwamah economics. In this study we analyze the conditions and characteristics of the monetary policy of the central bank in Muqāwamah economy by using a descriptive-analytical method. The findings of study show that the central bank's monetary policy of the Muqāwamah economy should increase economic resilience in addition to being Islamic. According to this, these policies should aim to maintain the stability of the national economy, enhance the transparency of the financial system, strengthen the national currency, strengthen the real sector of the economy, balance the monetary and real sector growth, reduce costs and create cost-effectiveness, increase public welfare and interests.