Mustawriq

Definition of "Mustawriq"

A customer who purchases a commodity from an Islamic bank and sells it to a third party to obtain liquidity. Mustawriq could also be an Islamic bank or financial institution which purchases a commodity from a customer or another institution and sells it to a third party to obtain liquidity. It is up to mustawriq to sell the commodity for whatever spot (cash) price. That means the resale price may be higher, lower, or equal to the original purchase price.