In a time when the global Islamic finance industry is getting more and more acceptance from both Muslim and non non-Muslim investors, many challenges related to the lack of standardization are still to overcome. As a matter of fact, we are still witnessing some product names having utterly different meaning from a region to another, and we still can see some products considered as Halal by some scholars and declared impermissible by others. One of these financial products that are creating confusing situations in Islamic finance nowadays is Tawarruq, also known as commodity Murabahah. Tawarruq is a mode of finance that involves a tripartite sale contract whereby one party buys an asset from a vendor for deferred payment and then sells it to a third party for cash at a price that is lower than the deferred price. This mode is very popular within bankers as a rapid and flexible way for acquiring liquidity. In fact, by using Tawarruq, bankers could avoid many constraints related to capital adequacy and provision for managing doubtful debts. Tawarruq can also be used in more complex structures, such as Islamic FX swaps where it helps hedging against currency rate fluctuation risks. This kind of contract combinations, replicating interest-based loans in form of a deferred liability, has been practiced by many Islamic banks for over three decades. However, there had never been consensus on their permissibility, and there are even some Shariah scholars who were open to such practice but who called later for a reassessment to avoid opening the door of Riba. Before taking a look at the arguments of defenders and opponents of that practice, we should first differentiate between different types of Tawarruq. The first type is the “Real Tawarruq” which happens when a person (Mustawriq) buys a commodity from a bank at a deferred price; and subsequently sells it to another party or bank for cash, in order to get his needed cash. The second type is “Organized Tawarruq”, also