It is narrated from Yazid bin Abdullah bin Qasit that Sayyiduna Abdullah bin Umar (may Allah be pleased with them both) sent one of his slaves with gold or silver. He engaged in a currency exchange transaction and made it on credit. When he returned, Sayyiduna Ibn Umar (may Allah be pleased with them both) severely beat him and said: Go, bring my property back and do not engage in a currency exchange transaction.
Hadith Referenceالادب المفرد / كتاب / 170
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Explanation & Benefits
Shaykh Maulana Usman Muneeb
Benefits and Issues: ➊ The buying and selling of gold and silver is called "bay‘ sarf" (currency exchange transaction). If gold is sold in exchange for gold, then there are two conditions for its permissibility: • The transaction must be on the spot (hand to hand) from both sides. • The weight must also be equal on both sides. Otherwise, it will be impermissible and unlawful. The same ruling applies to all currency notes of a single country. The second scenario is selling gold in exchange for silver, or silver in exchange for gold. In this, disparity in amount is permissible, however, deferred payment is not allowed. The currency of one country can also be exchanged for the currency of another country with disparity in amount, but even in this, deferred payment is not permissible.
➋ Since the servant of Sayyiduna Ibn ‘Umar (radi Allahu anhuma) conducted an unlawful transaction by dealing on credit, he (Ibn ‘Umar) beat him so that he would not repeat such an act in the future. From this, it is understood that a servant may be disciplined by beating in order to teach him proper conduct.
Source: Fadlullah al-Ahad: Urdu Commentary on al-Adab al-Mufrad, Page: 170