As regards our present diagnosis on the situation of the Eurozone we are very often asked three questions, namely : “ How do you assess the risks to price stability ? “ “What is your judgment on the present conjuncture in Europe? “ and finally “What about the euro on the exchange markets?”. Let me respond as concisely as possible to these three questions. To the first one I will refer to the analysis displayed, in the name of the Governing Council, by Wim Duisenberg :” after the recent slowdown in monetary growth the risks to price stability from the monetary side have become increasingly balanced. Caution still needs to be exercised ”. As far as the second question is concerned I can also refer to a joint analysis of the Governing Council : “ While downside risks to real GDP growth exist, growth is very likely to continue at a reasonably robust pace.” Finally, as regards exchange rates I will only mention that we are living in a universe of floating exchange system : in such a system exchange rates are not a target but are a pertinent indicator for monetary policy. And I see only one sentence to sum up our position : “ A solid , a strong euro is in the interest of Europe”. Thank you for your attention. *  BIS Review 11/2001  *  *  7
There are now more than 600 Islamic financial institutions operating in more than 75 countries. Increasingly, existing Islamic banking institutions are expanding their operations with presence in new jurisdictions. This is resulting in increased cross border financial flows. There has also been increased international participation in Islamic financial markets. Since the late 1990s the Sukuk market has emerged as an important form of intermediation in Islamic finance. It has been instrumental in the financing structures for infrastructure projects, investments in the utilities sectors, in particular for water and power projects, and in the services sector, in education, healthcare and transportation. Islamic finance essentially offers clear value propositions to both global issuers and investors. For issuers, there is access to new sources of funds and liquidity. And in introducing a new asset class, investors gain from portfolio diversification and new investment opportunities that are aligned to productive investment activities. Internationalisation of Islamic finance: mutually-reinforcing benefits Islamic finance draws its strength from serving the real economy. An important feature of Islamic finance is that it involves financial transactions that must be accompanied by an underlying economic transaction. And when it is cross border, it will facilitate financial flows that will support international trade and investment flows. It will contribute towards bridging economies and enhancing our economic connectivity with each other. In this current global environment in which emerging economies are demonstrating their resilience with the ability to sustain growth despite the moderation in global expansion, there is tremendous prospects for mutually reinforcing growth from increased economic connectivity.