Commercial Transactions (Kitab Al-Buyu)

Sunan Abi Dawud 3348

Hadith Text

The Messenger of Allah (ﷺ) as saying: Gold for gold is interest unless both hand over on the spot; wheat for wheat is interest unless both hand over on the spot; dates for dates is interest unless both hand over on the spot; barley for barley is interest unless both hand over on the spot.

Commentary on Riba al-Fadl

This hadith establishes the prohibition of Riba al-Fadl (excess interest) in six specific commodities: gold, silver, wheat, barley, dates, and salt. When exchanging identical commodities, three conditions must be met: 1) Equal measure, 2) Same type, and 3) Immediate exchange (hand-to-hand). Any delay or inequality constitutes unlawful interest.

Legal Rulings Derived

The wisdom behind this prohibition prevents exploitation and ensures fairness in trade. Gold and silver represent monetary values, while the food items represent essential sustenance. The requirement for immediate exchange prevents speculative trading and ensures transparency in transactions.

Scholars have extended these rules to modern currencies based on the underlying cause ('illah) of being monetary instruments. Paper money falls under the same rulings as gold and silver regarding riba.

Practical Application

When exchanging dollars for dollars, or euros for euros, they must be equal in amount and exchanged immediately. Similarly, when trading identical food items like wheat or dates, they must be equal in measure and exchanged on the spot to avoid riba.