The Ruling on Selling Currency for Currency with a Delay, and on Goods and Tawarruq
Machine translationRead the Arabic original
This is a letter we received from Ali Ibrahim Ali from the Republic of Sudan. He says: My uncle, my father’s brother, has money that he invests with people for riba (usury or interest) at an increase of fifty percent over a period of only three months, until the money increased greatly. Is this money halal (lawful)? And if it is not halal, what should he do?
Answer: It is obligatory for the Muslim to stay away from the actions of riba (usury or interest) and to guard against them; because riba is among the greatest of major sins. Allah, Mighty and Majestic, said: [al-Baqarah: 278-279], and the Prophet (peace and blessings be upon him) said: : [al-Baqarah: 275-276].
So riba is a serious matter, and it is obligatory to guard against it. This issue you asked about has a detailed ruling: If he is selling currency for currency, one hundred for one hundred and fifty, or ten for fifteen, with a delay or hand-to-hand, this is clear, forbidden riba according to all scholars.
As for if your intention is that he buys the goods and then sells them for an increase, that has a different status. If he buys the goods for one hundred, and then after he takes possession of them and they become his property and he receives them, he sells them to the one in need for a known delay for one hundred and fifty, or one hundred and forty, or one hundred and sixty, or more or less, for a known delay, there is nothing wrong with this according to the correct opinion, and there is no blame on him according to the majority of scholars; because the mentioned issue is driven by pressing need, and not everyone finds their need met by a gift or a loan, so they need to buy goods for a known delay, even with an increase. One may need them for use, just as one buys a car to use it, or buys a carpet to lay it down and sit on it, or buys food to eat it. One may buy that to sell it for cash because of his need for cash to pay off a debt on him, or to renovate a house of his, or to get married, or for other purposes. All these forms are permissible if the seller has owned the sold item, taken possession of it, and held it with him, whether cars, lands, or other items that he has taken possession of, owned, and received, and then sold them for a known delay. He sells what is bought for one hundred for one hundred and fifty, or what is worth a thousand for one thousand and five hundred, or more or less. The correct opinion is that there is no blame in that, whether he intended to use it, or intended to sell the goods for cash to use the cash for his need. This latter is called: tawarruq (a commodity sale used to obtain cash), where he buys the goods for a delay to sell them for cash and then benefit from the cash. Some scholars call this: the issue of tawarruq, and the common people call it: al-wa'dah (the promise), the issue of al-wa'dah. This is valid and there is nothing wrong with it according to the most correct of the scholars' opinions, for the reasons you have known. Yes.
The presenter: May Allah reward you.
Answer: It is obligatory for the Muslim to stay away from the actions of riba (usury or interest) and to guard against them; because riba is among the greatest of major sins. Allah, Mighty and Majestic, said:
(278) O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. (279) And if you do not, then be informed of a war [against you] from Allah and His
يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنتُمْ مُؤْمِنِينَ فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِBut Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein. (276) Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever.
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُوْلَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللَّهُ لا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍSo riba is a serious matter, and it is obligatory to guard against it. This issue you asked about has a detailed ruling: If he is selling currency for currency, one hundred for one hundred and fifty, or ten for fifteen, with a delay or hand-to-hand, this is clear, forbidden riba according to all scholars.
As for if your intention is that he buys the goods and then sells them for an increase, that has a different status. If he buys the goods for one hundred, and then after he takes possession of them and they become his property and he receives them, he sells them to the one in need for a known delay for one hundred and fifty, or one hundred and forty, or one hundred and sixty, or more or less, for a known delay, there is nothing wrong with this according to the correct opinion, and there is no blame on him according to the majority of scholars; because the mentioned issue is driven by pressing need, and not everyone finds their need met by a gift or a loan, so they need to buy goods for a known delay, even with an increase. One may need them for use, just as one buys a car to use it, or buys a carpet to lay it down and sit on it, or buys food to eat it. One may buy that to sell it for cash because of his need for cash to pay off a debt on him, or to renovate a house of his, or to get married, or for other purposes. All these forms are permissible if the seller has owned the sold item, taken possession of it, and held it with him, whether cars, lands, or other items that he has taken possession of, owned, and received, and then sold them for a known delay. He sells what is bought for one hundred for one hundred and fifty, or what is worth a thousand for one thousand and five hundred, or more or less. The correct opinion is that there is no blame in that, whether he intended to use it, or intended to sell the goods for cash to use the cash for his need. This latter is called: tawarruq (a commodity sale used to obtain cash), where he buys the goods for a delay to sell them for cash and then benefit from the cash. Some scholars call this: the issue of tawarruq, and the common people call it: al-wa'dah (the promise), the issue of al-wa'dah. This is valid and there is nothing wrong with it according to the most correct of the scholars' opinions, for the reasons you have known. Yes.
The presenter: May Allah reward you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.