The Book of Financial Transactions

Abu Hurayrah reported that the Messenger of Allah said, “Gold for gold, weight for weight and like for like; silver for silver, weight for weight and like for like. Whoever gives or takes an excess has engaged in usury.”

Abu Saʿid al-Khudri reported that the Messenger of Allah said, “Do not sell gold for gold except like for like, and do not give one side an excess over the other. Do not sell silver for silver except like for like, and do not exchange what is deferred for what is immediate.”

Abu Saʿid al-Khudri said, “My eyes saw and my ears heard the Messenger of Allah,” then he mentioned the prohibition on exchanging gold for gold and silver for silver except equally and like for like. He said not to exchange what is deferred for what is immediate, or to give one side an excess over the other.

ʿAtaʾ ibn Yasar reported that Muʿawiyah sold a gold or silver vessel for more than its weight. Abu al-Dardaʾ said that he heard the Messenger of Allah forbid this kind of transaction unless it is like for like.

Fadalah ibn ʿUbayd reported: “On the day of Khaybar, I bought a necklace containing gold and gems for twelve dinars. I took it apart and found that it contained more than twelve dinars. This was mentioned to the Prophet, who said it must not be sold until it is taken apart.”

Fadalah ibn ʿUbayd reported: “On the day of Khaybar, I acquired a necklace containing gold and gems and wanted to sell it. This was mentioned to the Prophet, who said to separate its parts from one another before selling it.”

Abu al-Minhal reported that a partner of his sold silver on credit. When the partner told him, Abu al-Minhal objected that it was not valid. The partner replied that he had made the sale in the market and no one had criticized him. Abu al-Minhal asked al-Baraʾ ibn ʿAzib, who said that when the Prophet came to Medina, people were making such transactions. The Prophet said that whatever is exchanged hand to hand is permissible, but whatever is on credit is usury. Al-Baraʾ then told him to ask Zayd ibn Arqam, who gave the same answer.

Abu al-Minhal reported that he asked al-Baraʾ ibn ʿAzib and Zayd ibn Arqam, who said that they had been merchants during the time of the Messenger of Allah. They asked the Prophet about currency exchange, and he said that if it is hand to hand, there is no harm; if deferred, it is not valid.

Abu al-Minhal reported that he asked al-Baraʾ ibn ʿAzib about currency exchange. Al-Baraʾ told him to ask Zayd ibn Arqam, saying that Zayd was better and more knowledgeable than he was. Zayd told him to ask al-Baraʾ, saying the same of him. Both said that the Messenger of Allah forbade exchanging silver for gold on credit.

ʿAbd al-Rahman ibn Abi Bakrah reported from his father that the Messenger of Allah forbade exchanging silver for silver and gold for gold except in equal amounts. He instructed them that they could exchange gold for silver, or silver for gold, as they wished.

ʿAbd al-Rahman ibn Abi Bakrah reported from his father that the Messenger of Allah forbade exchanging silver for silver or gold for gold except equal for equal, hand to hand. The Messenger of Allah instructed them to exchange gold for silver and silver for gold as they wished.

Usamah ibn Zayd reported that the Messenger of Allah said, “There is no usury except in deferred exchange.”

Abu Saʿid al-Khudri said that he asked Ibn ʿAbbas whether his view was something he had found in the Book of Allah or heard from the Messenger of Allah. Ibn ʿAbbas replied that he had found it neither in the Book nor heard it from the Messenger, but that Usamah ibn Zayd had informed him that the Messenger of Allah said, “Usury occurs only in deferred exchange.”

Ibn ʿUmar reported: “I used to sell camels at al-Baqiʿ, accepting dinars and taking dirhams in exchange. I went to the Prophet at the house of Hafsah and asked him about it. He said there is no harm in taking them at the exchange rate of that day, provided you do not part while anything remains unsettled between you.”

Ibn ʿUmar reported: “I used to exchange gold for silver or silver for gold. I told the Messenger of Allah about it, and he said not to part from the other party while anything about the transaction remains unclear between you.”

Saʿid ibn Jubayr disliked exchanging dinars for dirhams or dirhams for dinars.

Saʿid ibn Jubayr reported that Ibn ʿUmar saw no harm in taking dirhams in exchange for dinars, or dinars in exchange for dirhams.

Ibrahim disliked receiving dinars in exchange for dirhams if the exchange was on credit.

Saʿid ibn Jubayr saw no harm in the exchange, even if it was on credit.

A similar report was transmitted from Saʿid ibn Jubayr. Abu ʿAbd al-Rahman (al-Nasaʾi) said, “This is how I found it in this place.”