What is meant by the buy-back sale ('inah) and what is its ruling?
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Question:
May Allah reward you. This person asks about the issue of 'inah. What is this issue? Is this sale forbidden? We request examples of it.
Answer:
The issue of 'inah is when a person sells a commodity for a deferred price, sells a commodity for a deferred price, and then buys it back from the one who bought it from him for a cash price that is less than the deferred price. This is the issue of 'inah, and it is riba (usury or interest). It is called the issue of 'inah because its intention is riba, and the commodity is made a ruse to reach riba, so it is riba under the name of sale. It is also called 'inah because he returned to the essence of his money. It is also said that it is called 'inah from the word "ayn" (essence), which is gold, meaning that the intended goal of it is gold and riba. Yes.
May Allah reward you. This person asks about the issue of 'inah. What is this issue? Is this sale forbidden? We request examples of it.
Answer:
The issue of 'inah is when a person sells a commodity for a deferred price, sells a commodity for a deferred price, and then buys it back from the one who bought it from him for a cash price that is less than the deferred price. This is the issue of 'inah, and it is riba (usury or interest). It is called the issue of 'inah because its intention is riba, and the commodity is made a ruse to reach riba, so it is riba under the name of sale. It is also called 'inah because he returned to the essence of his money. It is also said that it is called 'inah from the word "ayn" (essence), which is gold, meaning that the intended goal of it is gold and riba. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما المراد ببيع العينة وما حكمها ؟ - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.