Al-Sa'di mentioned that today's dirhams are not classified as the two currencies; is this correct, and what is the ruling based on this?
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The questioner : The Shaykh Abd al-Rahman ibn Sa'di mentioned in the book of Fatwas that the dirhams existing today are not classified as, nor do they stand in place of, the two currencies. What is the basis of his statement, is this correct, and what is the ruling based on this?
The Shaykh : You know that these paper currencies are a recent occurrence and were not known previously. The scholars differed regarding them, resulting in six opinions:
Some say that they are like clothing; riba does not apply to them, and zakah is not obligatory on them. They are considered trade goods. If a person intends to trade with them, they are trade goods; if he intends to spend them, there is nothing [due on them], even if millions of millions gather in a person's possession. There is no doubt that this opinion is invalid and has no standing.
Some said that riba applies to them, both riba al-fadl and riba al-nasi'ah, and that it is not permissible to take one riyal for two, whether in cash or on credit. This is also a severe opinion.
Some say that if the type differs, difference in amount is permissible without credit. For example, it is permissible to buy a dollar worth four riyals for five riyals, or to sell it for three riyals when it is worth four in the market, but I need it. So I say to the one who has it: "Give me the dollar for four riyals." Or it is worth four, but I need the money and found no one to buy it except for three, so I sell it. Or it is a paper note and a person needs copper or iron money, so he gives him a ten-unit note and takes nine from him. There is no harm in this, but the condition in all cases is taking possession in the meeting of the contract. This is a middle opinion, between absolute prohibition and absolute permissibility. It is the choice of the Shaykh Abd al-Rahman ibn Sa'di (may Allah have mercy on him), who holds that selling these currencies to one another is permissible, whether equal or differing in amount, on the condition that it is not on credit.
The Shaykh (may Allah have mercy on him) goes further than what I said, stating: "On the condition that it is not on credit," meaning that in his view, it is also permissible for the taking of possession to be delayed if it is not specified by a term. However, what I mentioned is what I choose: if you sell a ten-unit note for nine and do not take possession, it is forbidden and not permissible, and the sale is invalid. If you take possession, there is no harm. Yes.
The Shaykh : You know that these paper currencies are a recent occurrence and were not known previously. The scholars differed regarding them, resulting in six opinions:
Some say that they are like clothing; riba does not apply to them, and zakah is not obligatory on them. They are considered trade goods. If a person intends to trade with them, they are trade goods; if he intends to spend them, there is nothing [due on them], even if millions of millions gather in a person's possession. There is no doubt that this opinion is invalid and has no standing.
Some said that riba applies to them, both riba al-fadl and riba al-nasi'ah, and that it is not permissible to take one riyal for two, whether in cash or on credit. This is also a severe opinion.
Some say that if the type differs, difference in amount is permissible without credit. For example, it is permissible to buy a dollar worth four riyals for five riyals, or to sell it for three riyals when it is worth four in the market, but I need it. So I say to the one who has it: "Give me the dollar for four riyals." Or it is worth four, but I need the money and found no one to buy it except for three, so I sell it. Or it is a paper note and a person needs copper or iron money, so he gives him a ten-unit note and takes nine from him. There is no harm in this, but the condition in all cases is taking possession in the meeting of the contract. This is a middle opinion, between absolute prohibition and absolute permissibility. It is the choice of the Shaykh Abd al-Rahman ibn Sa'di (may Allah have mercy on him), who holds that selling these currencies to one another is permissible, whether equal or differing in amount, on the condition that it is not on credit.
The Shaykh (may Allah have mercy on him) goes further than what I said, stating: "On the condition that it is not on credit," meaning that in his view, it is also permissible for the taking of possession to be delayed if it is not specified by a term. However, what I mentioned is what I choose: if you sell a ten-unit note for nine and do not take possession, it is forbidden and not permissible, and the sale is invalid. If you take possession, there is no harm. Yes.