I came saying who was prepared toexchange dirhams (for my gold), whereupon Talha b. Ubaidullah (Allah be pleased with him) (as he was sitting with 'Umar b. Khattib) said: Show us your gold and then come to us (at a later time). When our servant would come we would give you your silver (dirhams due to you). Thereupon 'Umar b. al-Khattib (Allah be pleased with him) said: Not at all. By Allah, either give him his silver (coins). or return his gold to him, for Allah's Messenger (ﷺ) said: Exchange of silver for gold (has an element of) interest in it. except when (it is exchanged) on the spot;and wheat for wheat is an interest unless both are handed over on the spot: barley for barley is interest unless both are handed over on the spot; dates for dates is interest unless both are handed over on the Spot.
The Book of Musaqah
Sahih Muslim 1586 a - Commentary by Classical Scholar
Hadith Context
This narration from Sahih Muslim demonstrates the practical application of the prohibition of riba (usury/interest) in everyday transactions. The incident occurred when a companion sought to exchange gold for silver dirhams, and Talha ibn Ubaidullah proposed a deferred payment arrangement.
Legal Analysis
Umar ibn al-Khattab's immediate intervention highlights the seriousness of avoiding riba. The Prophet's teaching establishes that when exchanging identical commodities (gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates), the exchange must be equal in quantity and handed over immediately in the same session.
The deferred payment proposed by Talha would have constituted riba al-nasi'ah (interest of delay), which is prohibited even if the quantities are equal, because the essential condition of simultaneous exchange was not met.
Scholarly Interpretation
Classical scholars explain that the six commodities mentioned in such hadiths represent broader categories: gold and silver represent monetary standards, while the food items represent staple commodities. The ruling extends to all items serving similar functions in society.
The requirement of "on the spot" exchange (yadan bi yadin) means both parties must take possession before separating. Any delay, even momentary, invalidates the transaction and renders it usurious.
Practical Application
This ruling forms the basis of Islamic finance principles regarding currency exchange and commodity trading. Muslims must ensure that when exchanging items of the same genus, the exchange is simultaneous and equal in measure to avoid any element of interest.