The Ruling on the Buy-Back Sale ('Inah)
Machine translationRead the Arabic original
Question:
The questioner asks: Among the forbidden sales, he asks about the buy-back sale ('inah). What is its ruling?
Answer:
The buy-back sale ('inah) is forbidden because it is a means to riba (usury or interest). It is when a person sells a commodity for a deferred price, and then the owner who sold it buys it back for a spot price that is less than the deferred price. Then, when the due date arrives, he collects the deferred price. This is riba; the commodity was made a ruse to reach it. Yes.
The questioner asks: Among the forbidden sales, he asks about the buy-back sale ('inah). What is its ruling?
Answer:
The buy-back sale ('inah) is forbidden because it is a means to riba (usury or interest). It is when a person sells a commodity for a deferred price, and then the owner who sold it buys it back for a spot price that is less than the deferred price. Then, when the due date arrives, he collects the deferred price. This is riba; the commodity was made a ruse to reach it. Yes.
Source
نور على الدرب - الفوزان - 02/235 — archive.org (10:31)
The Arabic text is a machine transcription of the audio recording.