This assignment delves into the specifics of Islamic monetary policies. It highlights the differences between Islamic central banks and conventional ones due to Sharia law restrictions on interest-based practices. The text explores various Islamic financial instruments like profit and loss sharing (Mudarabah & Musharakah), Sukuk, Murabahah, and Ijarah. It further discusses payment and settlement systems in Islamic finance, including RTGS, BCTS, BENEFIT, and EFTS. Finally, the assignment examines how Islamic central banks utilize monetary policy tools like Treasury bills, balance of payment surplus, and deposit interest rates to control inflation and manage currency demand within the economy.