The Prohibition of Ribā in Like-for-Like Exchanges

This noble ḥadīth from the Ṣaḥīḥayn establishes a fundamental principle in Islamic commercial law: the prohibition of ribā (usury/interest) in specific commodities known as ribawī items. The Prophet (peace be upon him) explicitly mentions six commodities: gold, silver, wheat, barley, and dates.

Conditions for Permissible Exchange

For exchange of these identical commodities to be lawful, two conditions must be met simultaneously: the items must be equivalent in quantity (taqābūḍ) and the exchange must be hand-to-hand (yadan bi-yadin) without delay.

The phrase "hand to hand" (ḥāʼ wa ḥāʼ) requires immediate reciprocal possession during the transaction session. Any deferment of payment or delivery invalidates the exchange and renders it usurious.

Legal Wisdom Behind the Prohibition

Scholars explain that these commodities were selected either as currency (thaman) or as staple food items (qūt). The prohibition prevents exploitation through unequal exchanges of essential goods.

This ruling ensures justice in commerce by eliminating hidden interest that could masquerade as legitimate trade when identical items are exchanged with disparity in quantity or timing.

Contemporary Application

Modern scholars extend these principles to contemporary currencies and commodities that serve similar functions. Paper money falls under the rules of gold and silver, requiring immediate exchange at equal value when trading identical currencies.

This ḥadīth forms the basis for Islamic banking principles, ensuring all financial transactions remain free from usurious practices that create unjust enrichment.