The Meaning of Bills of Exchange and the Sale of Checks and Gift Certificates

The questioner:
The Shaykh: May Allah reward you. The discussion is about matters that fall under which chapter of the lesson, and what they are.

The Shaykh:
What is the meaning of bills of exchange? Financial instruments.

The questioner:
Instruments like checks. Yes.

The Shaykh:
Checks are instruments; they are not money. A check is not considered money; it is considered an instrument for money in the bank, or in the company, or in the bank. It is an instrument, not money; it is a financial paper. Yes.
Like promissory notes and like the gift certificates from the government. You get a paper from the government, usually every year. It is not permissible to sell this paper.
And if someone comes to sell it to you and gives you the money now, and he takes what is his from the treasury, this is not permissible. It is riba (usury or interest) because it is selling an absent item for a present one. It is not permissible to sell you this check. This check has a balance in the bank; you go and take it. This is selling an absent item for a present one. The Prophet (peace and blessings be upon him) said: It must be that the exchange takes place in the meeting of the contract, because it is currency exchange. Yes.