The Book of Financial Transactions

Ibn ʿUmar reported that the Messenger of Allah forbade muzābanah: selling orchard fruit while it is still on the trees for a measured quantity of dried dates; selling grapes still on the vine for a measured quantity of raisins; or selling standing grain for a measured quantity of harvested grain. He forbade all of these transactions.

Jabir reported that the Messenger of Allah forbade mukhābarah, muzābanah, muhāqalah, and selling fruit before it was ready to eat. He also forbade exchanging it for anything other than gold or silver coins.

Ibn ʿUmar reported that the Messenger of Allah forbade selling date palms before the dates had begun to ripen, and selling grain ears before the grains had turned white and were safe from blight. He forbade both the seller and the buyer from doing so.

A man from among the Companions told Abu Salih: “Messenger of Allah, we cannot obtain Ṣayḥānī dates or a whole cluster of dates in exchange for an equal quantity of mixed dates, unless we add more.” The Messenger of Allah said, “Sell them for silver, then buy with it.”

Abu Saʿid al-Khudri and Abu Hurayrah reported that the Messenger of Allah appointed a man over Khaybar, who brought him high-quality janīb dates. The Messenger of Allah asked, “Are all the dates of Khaybar like this?” He replied, “No, by Allah, Messenger of Allah. We exchange one ṣāʿ of these for two ṣāʿs, or two for three.” The Messenger of Allah said, “Do not do that. Sell the mixed dates for dirhams, then buy janīb dates with the dirhams.”

Abu Saʿid al-Khudri reported that some ripe, juicy dates were brought to the Messenger of Allah, while his own dates were dry. He asked, “Where did you get these?” They replied, “We bought one ṣāʿ of these for two ṣāʿs of our dates.” He said, “Do not do that; this exchange is not valid. Rather, sell your dates and buy as much of these as you need.”

Abu Saʿid al-Khudri reported: “During the time of the Messenger of Allah, we were given mixed dates and would exchange two ṣāʿs for one ṣāʿ. When this reached the Messenger of Allah, he said not to exchange two ṣāʿs of dates for one ṣāʿ, two ṣāʿs of wheat for one ṣāʿ, or one dirham for two dirhams.”

Abu Saʿid reported: “We used to exchange two ṣāʿs of mixed dates for one ṣāʿ.” The Prophet said not to exchange two ṣāʿs of dates for one ṣāʿ, two ṣāʿs of wheat for one ṣāʿ, or two dirhams for one dirham.

Abu Saʿid reported that Bilal brought some barni dates to the Messenger of Allah, who asked, “What are these?” Bilal replied, “I bought one ṣāʿ of them for two ṣāʿs.” The Messenger of Allah said, “Ah! That is the very essence of usury. Do not go near it.”

ʿUmar ibn al-Khattab reported that the Messenger of Allah said, “Exchanging gold for silver is usury unless it is hand to hand; dates for dates are usury unless hand to hand; wheat for wheat is usury unless hand to hand; and barley for barley is usury unless hand to hand.”

Abu Hurayrah reported that the Messenger of Allah said, “Dates for dates, wheat for wheat, barley for barley, and salt for salt must be exchanged hand to hand. Whoever gives or takes an excess has engaged in usury—unless the types differ.”

Muslim ibn Yasar and ʿAbdullah ibn ʿAtik reported that ʿUbadah ibn al-Samit and Muʿawiyah met at a stopping place. ʿUbadah told them that the Messenger of Allah forbade exchanging gold for gold, silver for silver, wheat for wheat, barley for barley, and dates for dates—one narrator also mentioned salt for salt, while the other did not—unless equal for equal, like for like, hand to hand. He instructed them that gold and silver, and wheat and barley, could be exchanged across types hand to hand as they wished. One narrator added: whoever gives or takes extra has engaged in usury.

Muslim ibn Yasar and ʿAbdullah ibn ʿUbayd, also known as Ibn Hurmuz, reported that ʿUbadah ibn al-Samit and Muʿawiyah met at a stopping place. ʿUbadah said that the Messenger of Allah forbade exchanging gold for gold, silver for silver, dates for dates, wheat for wheat, and barley for barley—one narrator also included salt for salt—unless equal for equal and like for like. One narrator added that whoever gives or takes extra has engaged in usury; the other did not. He instructed that gold for silver and wheat for barley may be exchanged hand to hand as they wish.

Muslim ibn Yasar and ʿAbdullah ibn ʿUbayd reported that ʿUbadah ibn al-Samit and Muʿawiyah met at a stopping place. ʿUbadah said that the Messenger of Allah forbade exchanging gold for gold, silver for silver, wheat for wheat, barley for barley, and dates for dates—one narrator also mentioned salt for salt—unless equal for equal and like for like. One narrator included the statement that whoever gives or takes extra has engaged in usury; the other did not. The Prophet instructed them to exchange gold for silver and wheat for barley hand to hand, as they wished. When the report reached Muʿawiyah, he objected that they were reporting sayings of the Messenger of Allah that Muʿawiyah and his companions had not heard from him. When ʿUbadah heard of this, he stood and repeated the report, saying that they would relate what they had heard from the Messenger of Allah, even if Muʿawiyah disliked it. Qatadah differed in the chain, reporting it through Muslim ibn Yasar from Abu al-Ashʿath from ʿUbadah.

Abu al-Ashʿath al-Sanʿani reported that ʿUbadah ibn al-Samit, who had been present at Badr and pledged to the Prophet not to fear blame for the sake of Allah, stood to address the people. He said: “People, you have introduced transactions whose nature I do not know. Gold for gold and silver for silver must be exchanged by equal weight, whether in raw or coined form. There is no harm in exchanging silver for gold hand to hand, even if the silver is greater in amount, but deferred exchange is not valid. Wheat for wheat and barley for barley must be exchanged measure for measure. There is no harm in exchanging barley for wheat hand to hand, even if the barley is greater in amount, but deferred exchange is not valid. Dates for dates must be exchanged measure for measure.” He continued by mentioning salt, measure for measure, and said that whoever gives or asks for an excess has engaged in usury.

ʿUbadah ibn al-Samit reported that the Messenger of Allah said: “Gold for gold, whether raw or coined, must be exchanged by equal weight; silver for silver, whether raw or coined, by equal weight; and salt for salt, dates for dates, wheat for wheat, and barley for barley, equally and like for like. Whoever gives or takes an excess has engaged in usury.” This wording is from Muhammad; Yaʿqub did not include “barley for barley.”

Sulayman ibn ʿAli reported that Abu al-Mutawakkil passed by them in the market, and some people, including the narrator, approached him. They said, “We have come to ask you about currency exchange.” Abu al-Mutawakkil said that he had heard Abu Saʿid al-Khudri report: “Gold for gold, silver for silver”—Sulayman said the wording may have been “silver for silver”—wheat for wheat, barley for barley, dates for dates, and salt for salt must be equal for equal. Whoever gives or takes more than that has engaged in usury; the one who takes and the one who gives are alike.

ʿUbadah ibn al-Samit reported that he heard the Messenger of Allah say, “Gold, equal for equal.” Yaʿqub did not include the words “equal for equal.” Muʿawiyah said, “This does not say anything.” ʿUbadah replied, “By Allah, I do not mind being in a land where Muʿawiyah is absent. I testify that I heard the Messenger of Allah say this.”

Abu Hurayrah reported that the Messenger of Allah said, “A dinar for a dinar and a dirham for a dirham, with no excess between them.”

Mujahid reported that Ibn ʿUmar said, “A dinar for a dinar and a dirham for a dirham, with no excess between them. This is what our Prophet enjoined upon us.”