Q&A: Evidence for Contracts becoming Batil (void) and Fasid (defective) is based on ijma

Question:

Respected scholar Ata bin Khalil Abu Rashtah, may Allah ?????? ?????? protect you, Assalamu Alaykom wa Rahmatullah:

It is mentioned in the book, The Islamic Personality Volume 3, that: �Also the Sahaabah may Allah be pleased with them inferred the corruption and the invalidity of contracts from the prohibition, from that is Ibn �Omar�s proof of the invalidity of marrying the polytheist women by the saying of Allah Ta�ala:  ????? ?????????? ?????????????? �Do not marry polytheist women�� and no one disapproved this of him so it was a consensus�.

My question is, Barak Allahu feekum, how is the matter a consensus when the evidence is apparent in the verse?

Wassalamu Alaykom wa Rahmatullah

From Hamdi Al-Husseini

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Answer:

Wa Alaykom Assalam Wa Rahmatullah Wa Barakatuhu,

In order to clarify the answer to your question, I will provide the full text that you are asking about, under the chapter: �Prohibition of Dispositions and Contracts�:

The prohibition of dispositions and contracts which benefit their verdicts like the sale, the marriage and the likes returns to either the contract itself or to something else. If it returns to other than the disposition and the contract, like the prohibition of the sale at the call time of the Jumu�ah prayer; it doesn�t invalidate or corrupt the contract or the disposition. But if the prohibition returns to the disposition itself or to the contract itself then it does affect them and make them either invalid or corrupted. The evidence that the prohibition affects the dispositions and makes them invalid or corrupted is the saying of the Messenger ?: �???? ?????? ??????? ?????? ???????? ??????? ?????? ?????� �whoever does an action different to our matter it must be rejected� compiled by Muslim, it means it is invalid and not accepted, and it is undoubtedly that the prohibited matter is not a commanded matter nor is it of the deen, so it is rejected, and there is no meaning for it being rejected except the invalidity and the corruption. Also the Sahaabah may Allah be pleased with them inferred the corruption and the invalidity of contracts from the prohibition, from that is Ibn �Omar�s proof of the invalidity of marrying the polytheist women by the saying of Allah Ta�ala: 

????? ?????????? ??????????????� 

�Do not marry polytheist women��

(Al Baqarah: 221)

and no one disapproved this of him so it is a consensus, and from that is the Companion�s proof of corruption of the riba contracts, i.e. their invalidity, by His ?????? ?????? saying: 

�???????? ??? ?????? ???? ????????� 

��and give up what remains (due to you) from riba (usury)��

(Al Baqarah: 278)

and by the saying of the Messenger ?: �?? ???????? ????????? ??????????? ???? ???????? ??????????� �Do not sell gold by gold and do not sell silver by silver� compiled by Muslim. All these are evidences that the prohibition affects the dispositions and make them invalid or corrupted. This is if the prohibition is a decisive request for abstention and denotes forbiddance, but if the prohibition does not denote forbiddance but denotes dislike; it doesn�t affect the dispositions and the contracts, because the effect comes from the forbiddance, so the forbiddance of the disposition and the contract makes it invalid or corrupted.)

By looking at this text, it becomes apparent that the meaning of Ijmaa� (consensus) in this context is the Ijmaa of Sahaba, may Allah be pleased with them, that the prohibition contained in the saying of Allah ?????? ??????: ????? ?????????? ?????????????? �Do not marry polytheist women�� states the invalidity of the marriage contract, i.e. its nullity, Abdullah bin Omar (ra) deduced from this Verse the invalidity of the marriage contract with polytheist (mushrik) women, and none of the Sahaba denied this, which proves that the Sahaba view the prohibition related to contracts and dispositions in the Shariah texts as mentioned in the Verse above means the invalidity of the contract or the disposition� and this is different to the direct implication of the verse, because the verse indicates a direct prohibition of marrying polytheist women, but the Sahaba consented on top of this that the prohibition contained in the Verse proves the corruption of the contract i.e. its invalidity, so this is the position of the Ijmaa� (consensus), and it is a matter which the Ayah does not reveal, but is showed by the Ijmaa�.

To make the picture clearer for you, I will present to you two matters:

First: a man asks you: is he permitted to marry a Mushrik woman? You will respond: No it is prohibited, then he asks you: what is the evidence? You will reply:????? ?????????? ?????????????? �Do not marry polytheist women�� (Al Baqarah: 221)

Second: A man asks you that he is married to a Mushrik woman, so should he continue (his marriage) or what should he do? In this instance, it is not enough to present the Verse, so if you said to him: ????? ?????????? ?????????????? �Do not marry polytheist women�� (Al Baqarah: 221). He will tell you that he will not do so in the future, but he is asking about his current wife� thus your answer will not be sufficient unless you tell him that the consensus of the Sahaba agreed that the prohibition contained in the Verse proves the invalidity of the contract, i.e. you answer him that he should end his marriage contract with his wife because it is a nullified contract as the prohibition in the Verse to further the nullity of the contract by Ijmaa�.

While you believe here that the answer is not complete without mentioning the Verse, and you say that a prohibition lies in the Verse, then you add by saying that the meaning of the prohibition by Ijmaa� is the invalidity of the contract, without the Ijmaa stating that the prohibition benefits that invalidity of the contract, you would have not been able to answer his question on his previous marriage.

I hope that the matter has been clarified for you.

Your brother,

Ata Bin Khalil Abu Al-Rashtah

17 Jumada Ath-Thani 1437 AH

26/03/2016 CE

The link to the answer from the Ameer�s Facebook page:

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The link to the answer from the Ameer�s Google Plus page:

https://plus.google.com/100431756357007517653/posts/aSBehbpTrSv

The link to the answer from the Ameer�s Twitter page:

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University Loans; a response.

This article is from Intellectual Issuance blog.

All praise is due to the Almighty Allah ?.

I write this article in light of a recent student finance seminar led by my brother and senior in Islam, Shaykh Haitham Al-Haddad. I first wish to inform the reader of something that he/she should know; it is important that you think for yourself. Ever since our decline, we have forever passed on our cognition to another on matters that we are able to evaluate, leaving our minds desolate and unable to understand a given reality.

For those who question the validity of this article, please know it is built upon the work of the eminent mujtahid Sheikh Taqiuddin al-Nabahani, whom graduated from Al-Azhar University and the Dar-ul-Ulum college of Cairo, primarily upon his two renowned books; �Economic System in Islam� and �Islamic Personality�, both of which I will cite here:

Al-Nabhani, T., 1990. The Economic System In Islam. Fourth edition.London: Al-Khilafah Publications. Al-Nabhani, T., 2005. Islamic Personality (al-Shaksiyyah al-Islamiyyah). London: Al-Khilafah Publications.

Having said this, I wish to point out that this is not a scholarly issue per se. By this I mean that if a reality is explicit to the Muslim and the hukm to that reality is also clearly understood, then the natural conclusion would be intelligible, i.e this point is not contingent upon a Mujtahid. For example: A scholar does not have to let us know that interest is haraam for it to be so (as this is qatai), nor do we need him to let us know that interest based loans are haraam for the same reason. Finally, this should not be understood as an attack on Sheikh Haitham, rather an analysis and critique of the ideas he has put forward in this seminar, and those who read this should take it as such. If anyone wishes to put forward a rebuttal, I will only ask of them to not be ad hominem nor superficial about it.

In the seminar, Sheikh Haitham began by stating a rule in Islam, that everything is halal except if there is a clear evidence provided to say it isn�t (for all matters except ibadah).

In actuality, this is inaccurate. In fact, it is the very misconception and misapplication of this principle that contributed to the demise of the khilafah, whereby new realities came unto the ottomans (such as legislation, et cetera) only for them to accept them as halal (due to a lack of evidence) when they were indeed far from it. Whilst the discussion is indeed intricate, the principle comes to be, as Sheikh Taqiuddin has put it; that every �thing� (that is to say object) is permitted, �unless there is an evidence of prohibition and that all human actions are, in origin, restricted by the divine rules (aHkaam shar�iyyah), and no action can be undertaken until its rule (Hukm) is known�.

He then defined riba, as exchanging items for different amounts of the same item, that is to say exchanging money for a different amount of money.

Riba (usury) is however different from sarf (currency exchange). Sarf is taking one thing for another in the same type equally, or two different types equally (i.e exchanging one currency for another) and only takes place in the form of trade (Bay�u). Whereas Riba occurs in trade, but also in a loan (Qardh) and or in Salam (forward buying).

We must be concerned with the concept of Qardh here, as university loans are a form of loan that is taken out by the student whom repays it above a threshold to the government. In terms of a loan, interest is present in all its forms and must be regulated as such, that is to say it is haraam for a person to lend something to another person and expect more or less for it in return. Whilst Bay�u and Sarf can be exchanged for a different type and or amount, the loan (Qardh) can only be exchanged for the same amount and nothing else.

He then spoke about Mudarabah, as a justification for student loans.

�Mudharaba is a contract where two persons (or more) participate in trading, where the capital comes from one of them and the work from the other. This means that the work will be carried out by one of them and the other will provide the property. The two partners agree on a certain share of the profit. An example of this is when one of them provides one thousand pounds and the other person works with it, and the profit is divided between them. So Mudharaba is a kind of work which is a legal means of ownership.�

Firstly, it is quite clear that to use this contract and link it to a student loan is absolutely erroneous for the following reasons: 1) Taking a loan from the government is not akin to initiating a contract between two partners whom seek to work together for business, this is a contract between a creditor and a debtor, namely a student and the government. 2) Profit is only involved for one party (the government) as opposed to both 3) This is an investment based contract which is different to that of the contract for a loan, whereby partners are tied only by the amount they owe or lent each other as opposed to the capital/effort they have invested. 4) The government lends to the student purely for their education and not for the job they may or may not attain, hence there is no profit upon a degree that the student is expected to make, thus mudharaba is not applicable 5) Finally, and perhaps most importantly, the subject matter upon which Mudarabah is concluded must be permissible in Islam � which in this case it is not (as it is an interest based loan).

This is in reality a loan and hence the hukm applies to it in that sense. Anyone who believes that this is not a loan with interest on it is honestly, in my humble opinion, trying to avoid the brute reality with obscure reasons just to get a degree. The reality is blatant but the reasoning seems to be complex.

The question that must be asked is, what is the nature of the subject matter (student loans) here? The respected scholar Sheikh Haytham al-Haddad has unfortunately used a specific investment contract and misapplied it to another one of Qardh.

In fact, to call this an investment is utterly absurd, for according to Islam, I would not have to pay an ounce of my income back to the government, rather suffer the losses on what I invested, which according to the Sheikh, is myself, which has no place in Islamic financial contracts. Rather this is clearly a loan and not an investment, for it is a duty upon the debtor to repay the creditor with interest upon what was borrowed.

What is the reality of a loan?

A loan can be defined by an agreement between two parties in which one gives the other a sum of money with the expectation of it being paid back in full amount. The one who supplies the money is known as the lender and the one who takes it is known as the borrower. The borrower is said to be in debt to the lender.

What is the reality of a university?

A university is an educational institution, in which students attain academic qualifications and a place where research is done. In the United Kingdom, universities charge students a fee of �9000, in exchange for their academic services. These are known as tuition fees and are standardised at the aforementioned amount.

What is the reality of interest?

According to the Oxford dictionary, Interest can be defined by �money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt�. In Islam, �riba� is understood to be the process of making money upon money, that is the surplus on top of the principal.

What is the reality of Student Finance England (SFE) and Student Loans Company (SLC)?

The former is a government owned regulatory body, which administrates student applications in respect to their finance. The latter is a non-profit, government owned organisation that aims to �provide loans and grants to students in universities and colleges�.

What is the reality of the interest based university loan system?

This information has been taken directly from UCAS, the SLC and SFE. The student applies for a tuition fee loan of �9000 through SFE by signing a specific contract, in which it is clearly stated that interest is charged. The SLC behaves as an intermediary by paying the tuition fees to the university whilst the student is left in debt to the government. The student ultimately pays back this loan through a PAYE scheme once he/she earns above a threshold and has graduated.

To clarify, the student initiates this loan by signing the contract with SFE. Although the student may never see the money he/she borrowed, it is paid on their behalf to the university by the SLC. What happens with this money is irrelevant as the debt lies between the student and the government-based organisation and this matter is not altered when the SLC pays the university on the student�s behalf.

Is interest permitted in Islam?

As primitive as it seems, the answer to this question is no. It is categorically forbidden and it is a major sin. Allah swt says: �O you who believe, fear Allah and give up what remains of your demand for riba, if you are indeed believers. If you do it not, take notice of war from Allah and His Messenger.� (2:278-279).

Hence it is clear, even from the mouths of the ones who credit the funds to the debtor, that the student loan is comprised of interest and interest is strictly forbidden by Allah, a matter which would, if he took it, initiate war against the Almighty.

If you are still doubtful on this very clear matter, then know the following evidence:

Ab� `Abd Allah al-Nu`m�n b. Bash�r relates that he heard Allah�s Messenger (peace be upon him) say: �That which is lawful is clear and that which is unlawful is clear. Between the two are doubtful matters that few people have knowledge about. Whoever avoids these doubtful matters absolves himself of blame with respect to his religion and his honor. Whoever falls into doubtful things will fall into what is unlawful, just like the shepherd who grazes his flock too close to a private pasture is liable to have some of his flock stray into it. Every king has a private pasture, and Allah�s private pasture is what he has prohibited. Verily, in the body is a small piece of flesh that if it is healthy, the whole body is healthy and if it is sick, the whole body is sick. This small piece of flesh is the heart.�
[Sah�h al-Bukh�r� and Sah�h Muslim]

Finally, I wish to inform those who read this, that there are viable alternatives to university and also feasible routes to attaining the funds necessary for a degree.

For those who have their heart set on university: It is possible to reduce your tuition costs with bursaries/scholarships/grants available from your own university (which do not involve interest and are simple offer and acceptance contracts which transfer funds from the government or university to the student without the expectation of repayment). It may also be wise to seek an apprenticeship or a firm which can actually fund your academic qualification. Perhaps consider working for a year or two, so as to save funds for all three years (or even intermittently between years). There are also many reputable universities in Europe and abroad, whose tuition fees are often much lower. As a last resort, it may be possible to borrow from family and or friends (with no interest of course).

For those who are indifferent and merely want a career: Internships are becoming very popular, especially post rise in tuition fees. I know of many students that have taken their A-level and IB grades to pursue experience based careers. In fact, most of these students began apprenticeship and internship programs or from the bottom of a job in their desired field so as to work their way up � and they have done just that.

That being said, if you have the relevant funds to go through an academic institution without committing haraam, then I would definitely recommend it!

And I leave the rest unto Allah, for indeed He knows best. Ws.

Source

Q&A: Can Private Property become Public Property?

Question:

Assalaamu Alaikum our honourable Sheikh, I would like to ask you a question regarding public ownership.  Can a private ownership transfer to a public ownership in accordance to the Shariah rules, like transferring water springs from a private ownership into public property if that is needed for the public good? And if the public no longer needs it, does it revert as private property? Similar to oil wells when they are depleted, can they become a private property?

Thank you, and May Allah help you and make your foothold strong, Wa Assalaamu Alaikum Wa Rahmatullah Wa Barakatuhu

From Nadir Az-Za�tari

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Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakaatuhu,

If any type of public ownership was as a result of a divine reason (�illah), then the rule will follow this divine reason, whether it exists or in its absence. If the �illah is present then that public ownership will remain, but if it was absent, then it will be permitted to privately own that type of property, however on the condition that the �illah is Shar�i found in a Shar�i text.

For example, public utilities are considered as public property, which have been explained by the Prophet ? in the Hadeeth in terms of its description, and not its quantity: On the authority of Ibn Abbas that the Prophet ? said:

�???????? ????? ?? ???? ?? ????? ?????? ??????�

�People are partners in three: Water, Pasture, and fire.� Narrated by Abu Dawoud and narrated by Anas from the Hadeeth of Ibn Abbas and he added: �????? ????� �And its price is Haram�.

Ibn Majah narrated from Abu Huraira that the Prophet ? said:

�???? ?? ?????: ????? ?????? ??????�

�Three that must not be prevented: Water, Pasture, and Fire.�

This is the evidence that people are partners in water, pasture, and fire; and that they are not permitted for ownership by individuals.

However, the Prophet ? permitted individuals to own water in Ta�if and Khaibar, and they did so to irrigate their plants and fields.

Similarly, some Muslims privately owned wells in Medina; Bukhari narrated on the authority of Abdullah (ra) from the Prophet ? that he said:

�???? ?????? ????? ??????? ?????????? ????? ????? ??????? ????????? ???? ????????? ???????? ?????? ??????? ?????? ???????? ?????????�

�Whosoever gives oaths falsely to take the wealth of a Muslim illegitimately, he is a fajir (wicked), and will meet Allah while He ?????? ?????? is angry with him.�

And Allah ?????? ?????? revealed:

????? ????????? ??????????? ???????? ??????? ??????????????? ??????? ????????

�Indeed those who exchange the covenant of Allah and their [own] oaths for a small price.�

(Al-i-Imran: 77)

Al-Ash�ath came and said: An Ayah was revealed about what Abu Abdul Rahman spoke to you about me, I had a well in the land of my cousin, he asked:�?????????�  �Your witnesses�, I said I do not have witnesses, he said: �???????????� �his oath (is required)�, I said: O Messenger of Allah, then he must give an oath, then the Prophet ? mentioned this Hadeeth, and Allah ?????? ?????? revealed the Ayah to support His truth.� End quote

If partnership in water, in and of itself, and not because of the need for it, it would have not been permitted for individuals to own it. From the saying of the Prophet ?:

�???????? ????? ?? ???? ?? ?????�..

�People are partners in three: water��

And the permission given by the Prophet ? to individuals to own water, this extracts the �illah in the partnership in water, pasture and fire, and it is from the public utilities that people can not live without.

Hence the Hadeeth has mentioned three but they are based on �illah because they are public utilities. Therefore  this �illah follows what is reasoned in its existance and absence; so anything that is considered as public utility is considerd as public property, but if it is not considered as public utility even if it was mentioned in the Hadeeth like water, then it is not public property, but it is considered as property that can be privately owned. Public utilities are decided when all resources are not available for a group of people, whether it is a group living in house made of tents, or living in a village or city or a state, and have disputed to get it, is considered public utility, like water source, pastures or woods, grazing areas for cattle, and the like.

-e.g. Minerals are considered as public property if found in abundance, like in mines and the like, these minerals are public property, and it is not permitted to be owned by individuals, due to what Tirmithi narrated from Abyadh Bin Jamal:

�??? ??? ??? ???? ???? r? ???????? ????? ???? ??? ???? ?? ????? ??? ??? ?? ??????: ????? ?? ???? ??? ???? ???? ?? ????? ??????? ???: ??????? ???�

�He came to the Prophet ? and asked to assign him a salt (mine),  so He ? did, when he left, a man from his ? council said: Are you aware of what you assigned him? You assigned him a perennial (�id) spring of water, he  said: so he took it back from him.�

��Id� water is the continuous source of water, he drew the similarity between salt and water for its unlimited source. This Hadeeth is an evidence that the Prophet ? has given a portion of mountain salt for Abyadh Bin Jamal, but when he ? found out that the mineral is unlimited, he took it back from him and prevented its private ownership, i.e. it is public property.  Salt here is an example of a mineral, what is intended is the mineral not the salt. From this Hadeeth it is cear that the�illah of prevention of giving the portion of the mineral of salt is that it is �Id i.e. unlimited.

This ruling, that the unlimited mineral is a public property, which includes all minerals whether they are on the surface and easily accessed that people frequent and use, like salt, coal, emerald and the like, or it was found underground, that needs to be extracted with equipment, like gold, silver, iron, bronze, lead, and the like. And whether it is solid like crystals or liquid like oil, they are are minerals that come under the Hadeeth. Since unlimited minerals are public property for all citizens, the state is not permitted to give its ownership to individuals, companies, or allow individual or companies to extract them for their own use; instead the state must extract them itself on behalf of the Muslims, in looking after their affairs, and all that it extracts from them is public property for all the citizens.

Therefore, the property mentioned in the question will be considered as public ownership if they are public utilities, e.g. the water well in a village which is the only source of water, it is a public property and not allowed for individual ownership� But if the people in the village have another sufficient source of water, it will be permitted for an individual to dig a well in his land and own it, because it is not from the public utilities in this case, i.e. that the �illah of its public property is absent. But the well which was a public property does not become a private property but remains as a public property and it will be allowed to sell to individuals if there is sufficient water for the people and then it will be priced for the private ownership.

Hence, the water well is a public property if the people have no other source, but if there was an depletes or the people do not need it any more, i.e. the �illah is absent of it being a public utility, by the presence of a sufficient source of water, then it will be permitted to sell that well to individuals and it�s priced for private ownership. Oil wells for example are public utilities as long as it is unlimited, but if there were depletes, i.e. the �illah for being a public property is absent, then it is allowed to sell this well for people and its price is put for private ownership.

Your brother,

Ata Bin Khalil Abu Al-Rashtah

15 Jumada I 1437 AH

24/2/2016 CE

Link to the answer in the Ameer�s Facebook page:

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Link to the answer in the Ameer�s Google Plus page:

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Link to the answer in the Ameer�s Twitter page:

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A New Turning Point in Western Economies?

Global stock markets have started the year badly (New York Stock Exchange down 8%, MSCI World Market Index down 10%, Japan down by 19%). While many will view these markets as little more than gambling tools as they do not involve direct responsibility and ownership in the same way that Islamic company structure dictates, nevertheless, hundreds of millions of people globally depend on these markets for their retirement wealth and pension funds. They have also become a barometer for the success of the economies in which these companies operate. Central planners view the success of stock and bond markets as key to long term stability and the viability of Capitalism. As a result the main US and European markets have established �plunge protection teams� who will invest government money to ensure day to day stability, and the ability to suspend markets if they fall too far too quickly. But when short term intervention in markets (which are supposed to be free to go up and down!) becomes core government policy, it is a recipe for a major collapse. It is arguable that Central Bank policies in the US. Europe and Asia (Japan) in excessive money printing (Quantitative Easing) largely went into propping up stock and bond markets and consequently recent cut backs in QE have coincided with the fall offs in the stock markets, particularly in the US.

Federal Reserve Chair Janet Yellen in testimony to Congress this past week stated that negative interest rates are still very much an option in the US. So after 7 years of virtually zero interest rates failing to stimulate sufficient growth, the next step is to go to negative rates, where banks will be charged if they hold reserves � charges which will be passed onto savers. Negative interest rates now form official policy in Japan, Sweden, Switzerland and Denmark (23% of all Capital markets!). This represents forced confiscation of wealth from the middle classes. Banks will continue to charge high rates of interest (usury) for loans and mortgages, but will force those with money to invest it (into the stock market or government bonds ideally according to policy) in order to avoid charges on their capital (the negative rate). In reality this is a pre-cursor to removing all paper based money and the introduction of electronic money (as the public will move to hold cash rather than be charged to keep their money in the bank). Governments will argue they are working against crime and terrorism in banning cash, but the truth lies in controlling all monetary transactions.

The other major danger to Central Bank plans is gold and silver � which is the ultimate in real money. As you cannot print new gold and silver in the same way that a bank merely prints more money or creates virtual electronic money like bitcoin; gold and silver acts as a real control over government policies. Other than storage fees, gold and silver has no counterparty risk (for example a major bank failure as threatened in 2008). It is little wonder that gold is up 18% since the start of the year (and silver 14%). Despite consistent efforts in suppressing the price of gold and silver over the past 4 years via paper based derivative trading, it now appears that the markets for real physical gold and silver (not paper derivative contracts � which merely represent a promise to provide G/S at a future date) are beginning to take greater control in the price setting. China and India alone bought the equivalent of the world�s new gold production in the past year with it flowing from West to East.

A true role for Gold and Silver

The many Quranic references to gold and silver not only as money but as a measurement for zakat, hudud limits, etc, serve as clear evidences that these are to be used as currency in the future Khilafah state (Caliphate).

??????????? ??????????? ????????? ???????????? ????? ????????????? ??? ??????? ?????? ???????????? ????????? ???????

�And those who hoard gold and silver and spend it not in the way of Allah � give them tidings of a painful punishment.�

(Surah Tawbah 9:34)

The prohibition of hoarding currency together with forbidding interest of any type (including negative) acts as strong motivators for the circulation of wealth. Rather than gamble wealth in derivative or stock markets, Muslims seek investment in tangible businesses in which they are accountable for the correct running of those businesses. Generous spending in society is a natural course for peoples that understand that their rizq is truly from Allah ?????? ??????, rather than the contradictory gimmicks that secular governments dream up to try and cajole populations into spending and �investment� into yet more haram schemes (stock, bond, derivative markets). With gold and silver acting as a true store of value rather than the shifting foundations of sand which paper and electronic currencies represent.

Jamal Harwood

Written for Ar-Rayah Newspaper � Issue 65

Ameer's Q&A: Exchange and Conversion of Currency

Question:

Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,

I hope from Allah ?????? ?????? that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa ? have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.

From Mohammad Az-Zaru

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Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu

This transaction doesn�t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:

• As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:

Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: �My business partner and I bought something hand-in-hand and also on credit�. Al-Baraa bin A�zib came and we asked him about this, so he said: �My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah ? about this and he said: �??? ????? ????? ??????? ????????? ????? ????? ????????? ?????????� �What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.�

Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: �Who will exchange Dirhams?� So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: �Show us your gold, then come to us. If our servant comes, we will give you your money.� Umar bin Al-Khattab (rA) said: �No, in Allah�s Name you will give him his money or return to him his gold, as the Prophet ? said:

�????????? ??????????? ?????? ?????? ????? ???????? ?????????? ?????????? ?????? ?????? ????? ???????? ???????????? ???????????? ?????? ?????? ????? ???????? ??????????? ??????????? ?????? ?????? ????? ???????�

�Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot�.

Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah ? said:

�????????? ???????????? ???????????? ????????????? ?????????? ??????????? ???????????? ????????????? ??????????? ???????????? ??????????? ???????????? ??????? ????????? ??????? ?????????? ????? ??????? ??????? ??????????? ?????? ????????????? ????????? ?????? ????????? ????? ????? ????? ??????�

�Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.�

The meaning behind �hand-in-hand� is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time�

• After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
• A person might say: what�s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet ? as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: �except for trading on the spot�, �hand-in-hand� and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah ?????? ?????? is All-Knowing and The Wise.

 Your brother

Ata Bin Khalil Abu Al-Rashtah

24 Rabii� Ath-Thani 1437 AH

19/01/2016 CE

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wer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)

Question:

Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,

I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.

Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu

This transaction doesn�t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:

-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:

Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: �My business partner and I bought something hand-in-hand and also on credit�. Al-Baraa bin A�zib came and we asked him about this, so he said: �My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: �??? ????? ????? ??????? ????????? ????? ????? ????????? ?????????��What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.�

Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: �Who will exchange Dirhams?� So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: �Show us your gold, then come to us. If our servant comes, we will give you your money.� Umar bin Al-Khattab (rA) said: �No, in Allah�s Name you will give him his money or return to him his gold, as the Prophet (saw) said: �????????? ??????????? ?????? ?????? ????? ???????? ?????????? ?????????? ?????? ?????? ????? ???????? ???????????? ???????????? ?????? ?????? ????? ???????? ??????????? ??????????? ?????? ?????? ????? ???????��Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot�.

Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: �????????? ???????????? ???????????? ????????????? ?????????? ??????????? ???????????? ????????????? ??????????? ???????????? ??????????? ???????????? ??????? ????????? ??????? ?????????? ????? ??????? ??????? ??????????? ?????? ????????????? ????????? ?????? ????????? ????? ????? ????? ??????�   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.� The meaning behind �hand-in-hand� is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time�

-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.

-      A person might say: what�s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: �except for trading on the spot�, �hand-in-hand� and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.

Your brother

Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer�s Facebook page.

The link to the answer on Google Plus.

The link to the answer on Twitter.

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Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)

Question:

Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,

I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.

Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu

This transaction doesn�t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:

-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:

Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: �My business partner and I bought something hand-in-hand and also on credit�. Al-Baraa bin A�zib came and we asked him about this, so he said: �My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: �??? ????? ????? ??????? ????????? ????? ????? ????????? ?????????��What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.�

Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: �Who will exchange Dirhams?� So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: �Show us your gold, then come to us. If our servant comes, we will give you your money.� Umar bin Al-Khattab (rA) said: �No, in Allah�s Name you will give him his money or return to him his gold, as the Prophet (saw) said: �????????? ??????????? ?????? ?????? ????? ???????? ?????????? ?????????? ?????? ?????? ????? ???????? ???????????? ???????????? ?????? ?????? ????? ???????? ??????????? ??????????? ?????? ?????? ????? ???????��Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot�.

Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: �????????? ???????????? ???????????? ????????????? ?????????? ??????????? ???????????? ????????????? ??????????? ???????????? ??????????? ???????????? ??????? ????????? ??????? ?????????? ????? ??????? ??????? ??????????? ?????? ????????????? ????????? ?????? ????????? ????? ????? ????? ??????�   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.� The meaning behind �hand-in-hand� is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time�

-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.

-      A person might say: what�s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: �except for trading on the spot�, �hand-in-hand� and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.

Your brother

Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer�s Facebook page.

The link to the answer on Google Plus.

The link to the answer on Twitter.

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Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)

Question:

Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,

I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.

Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu

This transaction doesn�t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:

-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:

Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: �My business partner and I bought something hand-in-hand and also on credit�. Al-Baraa bin A�zib came and we asked him about this, so he said: �My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: �??? ????? ????? ??????? ????????? ????? ????? ????????? ?????????��What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.�

Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: �Who will exchange Dirhams?� So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: �Show us your gold, then come to us. If our servant comes, we will give you your money.� Umar bin Al-Khattab (rA) said: �No, in Allah�s Name you will give him his money or return to him his gold, as the Prophet (saw) said: �????????? ??????????? ?????? ?????? ????? ???????? ?????????? ?????????? ?????? ?????? ????? ???????? ???????????? ???????????? ?????? ?????? ????? ???????? ??????????? ??????????? ?????? ?????? ????? ???????��Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot�.

Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: �????????? ???????????? ???????????? ????????????? ?????????? ??????????? ???????????? ????????????? ??????????? ???????????? ??????????? ???????????? ??????? ????????? ??????? ?????????? ????? ??????? ??????? ??????????? ?????? ????????????? ????????? ?????? ????????? ????? ????? ????? ??????�   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.� The meaning behind �hand-in-hand� is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time�

-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.

-      A person might say: what�s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: �except for trading on the spot�, �hand-in-hand� and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.

Your brother

Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer�s Facebook page.

The link to the answer on Google Plus.

The link to the answer on Twitter.

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Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)

Question:

Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,

I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.

Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu

This transaction doesn�t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:

-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:

Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: �My business partner and I bought something hand-in-hand and also on credit�. Al-Baraa bin A�zib came and we asked him about this, so he said: �My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: �??? ????? ????? ??????? ????????? ????? ????? ????????? ?????????��What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.�

Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: �Who will exchange Dirhams?� So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: �Show us your gold, then come to us. If our servant comes, we will give you your money.� Umar bin Al-Khattab (rA) said: �No, in Allah�s Name you will give him his money or return to him his gold, as the Prophet (saw) said: �????????? ??????????? ?????? ?????? ????? ???????? ?????????? ?????????? ?????? ?????? ????? ???????? ???????????? ???????????? ?????? ?????? ????? ???????? ??????????? ??????????? ?????? ?????? ????? ???????��Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot�.

Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: �????????? ???????????? ???????????? ????????????? ?????????? ??????????? ???????????? ????????????? ??????????? ???????????? ??????????? ???????????? ??????? ????????? ??????? ?????????? ????? ??????? ??????? ??????????? ?????? ????????????? ????????? ?????? ????????? ????? ????? ????? ??????�   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.� The meaning behind �hand-in-hand� is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time�

-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.

-      A person might say: what�s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: �except for trading on the spot�, �hand-in-hand� and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.

Your brother

Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer�s Facebook page.

The link to the answer on Google Plus.

The link to the answer on Twitter.

- See more at: http://www.hizb-ut-tahrir.info/en/index.php/qestions/jurisprudence-questions/9544.html#sthash.ljK14a3x.dpuf