Forms of Dealing in Riba
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Question:
After that, we move on to a message from Abdullah Muhammad from Tanzania. He says: Is riba (usury or interest), O Shaykh, limited to gold and silver, or does it apply to all transactions and foodstuffs? Because, as I read in the books of Islamic jurisprudence, riba does not occur except in gold and silver, but not in currencies. Please explain this to us in detail?
Answer:
Riba occurs in gold and silver, and it also occurs in other currencies, such as the dollar, the dinar, the Egyptian pound, the pound, the French franc, the British pound, and so on. All currencies are included; this is the correct view, because they have taken the place of gold and silver.
The point is that they are a price by which people transact, so they are given the rulings of currency. It is not permissible to sell one for another without taking possession, meaning: at a distance, meaning: after separation without deferred payment. Rather, it must be hand-to-hand. So if he sells dollars for Saudi riyals, or dollars for Egyptian pounds, or dollars for Iraqi dinars, or Jordanian dinars, the exchange must be immediate, like gold and silver, hand-to-hand; because the ruling has become applicable to these currencies in place of gold and silver.
And likewise, if he sells wheat for barley, or wheat for dates, or barley for dates, the exchange must be immediate; due to his saying (peace and blessings be upon him):Sahih Muslim 1587c Then he said (peace and blessings be upon him): Sahih Muslim 1587c.
For like-for-like exchange, two conditions are required: similarity and immediate exchange. Gold for gold, similarity and immediate exchange are required. Silver for silver, similarity and immediate exchange are required. Dollar for dollar, similarity and immediate exchange are required. Two dinars for two dinars, four for four, ten for ten. Wheat for wheat, similarity and immediate exchange are required. A sa' (a dry measure of about 3 kg) for a sa', two sa' for two sa', with immediate exchange. Barley for barley is the same, dates for dates is the same. Both things are required: similarity and immediate exchange.
As for when they differ, silver for gold; similarity is not prescribed; because there is a difference between them. But the exchange of silver for gold must be hand-to-hand, it must be hand-to-hand. Dollar for Saudi riyal hand-to-hand, dollar for Egyptian pound hand-to-hand, dollar for Iraqi dinar, or Jordanian dinar hand-to-hand, and so on.
The Council of Senior Scholars has studied this topic in the past, and decided that this is obligatory, and that this is what should be done, and that these currencies are given the rulings of gold and silver; because they have taken their place in buying and selling. Yes.
The presenter : May Allah reward you with good, Your Eminence the Shaykh.
After that, we move on to a message from Abdullah Muhammad from Tanzania. He says: Is riba (usury or interest), O Shaykh, limited to gold and silver, or does it apply to all transactions and foodstuffs? Because, as I read in the books of Islamic jurisprudence, riba does not occur except in gold and silver, but not in currencies. Please explain this to us in detail?
Answer:
Riba occurs in gold and silver, and it also occurs in other currencies, such as the dollar, the dinar, the Egyptian pound, the pound, the French franc, the British pound, and so on. All currencies are included; this is the correct view, because they have taken the place of gold and silver.
The point is that they are a price by which people transact, so they are given the rulings of currency. It is not permissible to sell one for another without taking possession, meaning: at a distance, meaning: after separation without deferred payment. Rather, it must be hand-to-hand. So if he sells dollars for Saudi riyals, or dollars for Egyptian pounds, or dollars for Iraqi dinars, or Jordanian dinars, the exchange must be immediate, like gold and silver, hand-to-hand; because the ruling has become applicable to these currencies in place of gold and silver.
And likewise, if he sells wheat for barley, or wheat for dates, or barley for dates, the exchange must be immediate; due to his saying (peace and blessings be upon him):
Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made hand to hand
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والشعير بالشعير، والتمر بالتمر، والملح بالملح، مثلًا بمثل، سواءً بسواء، يدًا بيدIf these classes differ, then sell as you wish if payment is made hand to hand.
فإذا اختلفت هذه الأصناف؛ فبيعوا كيف شئتم إذا كان يدًا بيدFor like-for-like exchange, two conditions are required: similarity and immediate exchange. Gold for gold, similarity and immediate exchange are required. Silver for silver, similarity and immediate exchange are required. Dollar for dollar, similarity and immediate exchange are required. Two dinars for two dinars, four for four, ten for ten. Wheat for wheat, similarity and immediate exchange are required. A sa' (a dry measure of about 3 kg) for a sa', two sa' for two sa', with immediate exchange. Barley for barley is the same, dates for dates is the same. Both things are required: similarity and immediate exchange.
As for when they differ, silver for gold; similarity is not prescribed; because there is a difference between them. But the exchange of silver for gold must be hand-to-hand, it must be hand-to-hand. Dollar for Saudi riyal hand-to-hand, dollar for Egyptian pound hand-to-hand, dollar for Iraqi dinar, or Jordanian dinar hand-to-hand, and so on.
The Council of Senior Scholars has studied this topic in the past, and decided that this is obligatory, and that this is what should be done, and that these currencies are given the rulings of gold and silver; because they have taken their place in buying and selling. Yes.
The presenter : May Allah reward you with good, Your Eminence the Shaykh.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.