❖ Overview
This article explores the Islamic rulings on riba (usury) and the principles governing exchange transactions, as derived from authentic Hadiths. The Prophet Muhammad ﷺ provided clear guidelines to prevent unjust enrichment and ensure fairness in trade.◈ Hadith 1: Equal Exchange and Immediate Transfer
Narrated by Umar ibn al-Khattab رضي الله عنه:The Messenger of Allah ﷺ said:
"Gold for silver is riba unless it is hand to hand; wheat for wheat is riba unless it is hand to hand; barley for barley is riba unless it is hand to hand."
Explanation:
This Hadith emphasizes that when exchanging commodities of the same type, two conditions must be met:
- Immediate Exchange: The transaction must be completed on the spot without any delay.
- Equal Quantity: The items exchanged must be equal in weight and measure.
Failing to meet these conditions constitutes riba, which is strictly prohibited in Islam.
◈ Hadith 2: Prohibition of Unequal and Deferred Exchanges
Narrated by Abu Sa'id al-Khudri رضي الله عنه:The Messenger of Allah ﷺ said:
"Do not sell gold for gold unless equal in weight and immediate; do not sell silver for silver unless equal in weight and immediate; and do not sell what is not present by what is present."
Explanation:
This Hadith further reinforces the prohibition of riba by disallowing:
- Unequal Exchanges: Trading unequal amounts of the same commodity.
- Deferred Transactions: Delaying the exchange of one or both items.
Such practices can lead to exploitation and are therefore forbidden.
◈ Hadith 3: The Case of Bartering Dates
Narrated by Abu Sa'id al-Khudri رضي الله عنه:Bilal رضي الله عنه brought Barni dates to the Prophet ﷺ. The Prophet ﷺ asked:
"Where did you get these?"
Bilal replied:
"We had inferior dates, and I exchanged two measures of them for one measure of Barni dates to give to the Prophet ﷺ."
The Prophet ﷺ said:
"Oh! This is exactly riba! Do not do this. Instead, sell the inferior dates for money and then buy the better dates with that money."
Explanation:
This incident illustrates that exchanging unequal quantities of the same commodity, even with the intention of giving a gift, constitutes riba. The correct method is to sell the inferior product and use the proceeds to purchase the superior one.
◈ Hadith 4: Prohibition of Deferred Exchange in Currency
Narrated by Abu al-Minhāl:I asked al-Bara' ibn 'Azib and Zayd ibn Arqam رضي الله عنهما about exchanging gold for silver. Each of them said:
"The Messenger of Allah ﷺ forbade us from selling gold for silver on credit."
Explanation:
This Hadith prohibits deferred exchanges in currency transactions. Both parties must exchange the currencies immediately to avoid riba.
◈ Hadith 5: Equal Exchange in Gold and Silver
Narrated by Abu Bakrah رضي الله عنه:The Messenger of Allah ﷺ said:
"Do not sell silver for silver or gold for gold unless equal in weight and immediate. But you may sell gold for silver or silver for gold as you like, provided it is hand to hand."
Explanation:
This Hadith allows the exchange of different types of commodities (e.g., gold for silver) with flexibility in quantity, as long as the transaction is immediate. However, exchanging the same commodity requires equality in weight and immediate transfer.
❖ Conclusion
Islamic teachings strictly prohibit riba in all forms to promote justice and fairness in economic transactions. Key principles include:- Immediate exchange in transactions.
- Equality in quantity when exchanging the same commodity.
- Avoidance of deferred payments in currency exchanges.
Adhering to these guidelines ensures compliance with Islamic law and fosters ethical financial practices.
References:
- Sahih al-Bukhari, Book of Sales, Hadith 2134
- Sahih Muslim, Book of Transactions, Hadith 1586
- Sahih al-Bukhari, Book of Sales, Hadith 2177
- Sahih Muslim, Book of Transactions, Hadith 1584
- Sahih al-Bukhari, Book of Agency, Hadith 2312
- Sahih Muslim, Book of Transactions, Hadith 1594
- Sahih al-Bukhari, Book of Sales, Hadith 2180
- Sahih Muslim, Book of Transactions, Hadith 1589
- Sahih al-Bukhari, Book of Sales, Hadith 2182
- Sahih Muslim, Book of Transactions, Hadith 1590
