Question Summary:
Is paper money the same as gold and silver? Question Detail:
I had come across the following hadith
From ‘Ubada ibn al-Samit: The Holy Prophet said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt – like for like, equal for equal, and hand-to-hand; if the commodities differ, then you may sell as you wish, provided that the exchange is hand-to-hand.” [Muslim, Kitab al-Musaqat, Bab al-sarfi wa bay'i al-dhahabi bi al-waraqi naqdan, #3853; also in Tirmidhi].
As per my understanding, the currency of today is the gold / silver mentioned above. A thing which is nagging my mind is while purchasing Gold Jewellery, say for a daughters marriage, is it permissible to buy it on credit (jeweller is a freind !!)?. Similary can i buy wheat / dates / salt or wheat lour from my local grocer on credit terms (usually once a month when i receive my salary) ?. Please do reply on the basis of the above hadith.
Answer :
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Broadly speaking, the banknotes, which we today consider to be currency, were initially regarded as certificates of debt, promising to pay the amount of gold represented by them upon demand. At that time, these receipts or promissory notes were backed up by actual gold. In the present time, they have come to be regarded in international trade, and by the common people, as currency or media of exchange (thaman).[1] No longer are they backed up by gold.
When paper “money” or banknotes were first introduced, they were legal documents that transferred a debt to the original debtor who promised to pay the amount of gold represented by them upon demand. They were a media of exchange that had neither intrinsic nor extrinsic value; rather, they only represented gold, so the Shar‘ī consequences of the exchange of gold would have applied to them.
Hence, during this initial stage, it was impermissible to buy gold using banknotes due to the Shari’ah principle that the exchange of gold with gold (Bay’ Sarf) is only valid on a spot exchange basis. [2] A deferred payment or transfer of a debt - as was the case with banknotes - would render the sale invalid. Similarly, inter-currency transactions were also invalid on the same basis.[3]
However, with the passage of time, reserve banks gradually phased out the gold backing of banknotes. Eventually, banknotes no longer represented gold, but they came to be regarded as ‘fiat money,’ that is, objects of no intrinsic value given fixed value by the governments, which was then accepted as ‘legal tender’ and ‘money’ by the masses.
Hence, nowadays, neither do they represent gold nor can they be exchanged for gold in the reserve banks but they represent its “purchasing power”. They have adopted an independent nature as ‘conventional currency’ (thaman ‘urfī).
Based on this, the rulings in relation to purchasing gold and silver using banknotes have now changed. Since banknotes are not in any way linked to gold or silver, it is permissible to buy gold, silver as well as jewellery made from gold or silver on credit.[4]
As far as inter currency trade is concerned, there are two dimensions to this:
When trading in the same currency (e.g. dollars for dollars), it is not permissible to trade on credit, nor is it permissible to exchange varying amounts. For example, one may not exchange $5 for $10.
When trading in different currencies (e.g. dollars for pounds), it is permissible to trade on credit. However, the market value of the currencies at the time of transacting shall be considered. For example, at the time of transacting, ₤1 is equal to $1.50. At the time of payment, the rate changes to $1.70. The amount will be payable at the rate of $1.50 and not the prevailing market rate of $1.70.
However, if it is a spot transaction and none of the currencies is on credit, then the buyer and seller may agree on any rate they wish to transact on.
As far as buying wheat, dates, salt, etc. is concerned, it is permissible to buy them on credit in exchange for banknotes.[5] The ruling contained in the Hadīth will not apply to banknotes as is clear from the above explanation.
And Allah Ta’āla Knows Best
Nabeel Valli
Student Darul Iftaa
Lusaka, Zambia
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net
[1] الهداية في شرح بداية المبتدي (2/ 608) [رحمانية]
وأما الفلوس النافقة فلأنها تروج رواج الأثمان فالتحقت بها
[2] النتف في الفتاوى للسغدي (278) [العلمية]
وَالسَّابِع بيع الصّرْف وَهُوَ جَائِز وَلَا تجوز فِيهِ النَّسِيئَة الْبَتَّةَ فِي قَول أبي حنيفَة وأصحابه وأبي عبد الله وَتجوز عِنْد أهل الحَدِيث
النتف في الفتاوى للسغدي (298) [العلمية]
أما إذا كَانَ الجنسان متفقين مثل الذَّهَب بِالذَّهَب وَالْفِضَّة بِالْفِضَّةِ فان ذَلِك أيضا على وَجْهَيْن
أحدهما أن يكون الْجِنْس بِالْجِنْسِ من غير أن يكون مَعَ اُحْدُ الجنسين عرض مثل الذَّهَب بِالذَّهَب وَالْفِضَّة بِالْفِضَّةِ مفردين فانه لَا يجوز فِيهِ خَمْسَة أشياء
1 -التَّفَاضُل 2 والنسيئة 3 وَالْخيَار 4 والجهالة 5 والافتراق قبل الْقَبْض. والجهالة أن لَا يعلمَا أيهما أكثر
[3] الأصل المعروف بالمبسوط للشيباني (2/ 412) [دار ابن حزم]
وَكَذَلِكَ الْفُلُوس لَا بَأْس بِأَن يسْتَبْدل فلسًا بفلسين أَو أَكثر يدا بيد وَلَا خير فِيهِ نَسِيئَة وَهَذَا قَول أبي يُوسُف وَقَالَ مُحَمَّد لَا يجوز ذَلِك يدا بيد وَلَا نَسِيئَة لِأَن الْفُلُوس ثمن إِن ضَاعَ مِنْهَا شَيْء قبل الْقَبْض وَجب على صَاحبه مَكَانَهُ لِأَنَّهُ من نَوعه
بدائع الصنائع في ترتيب الشرائع (7/ 64) [العلمية]
وَيَجُوزُ بَيْعُ الْمَعْدُودَاتِ الْمُتَقَارِبَةِ مِنْ غَيْرِ الْمَطْعُومَاتِ بِجِنْسِهَا مُتَفَاضِلًا عِنْدَ أَبِي حَنِيفَةَ، وَأَبِي يُوسُفَ بَعْدَ أَنْ يَكُونَ يَدًا بِيَدٍ كَبَيْعِ الْفَلْسِ بِالْفَلْسَيْنِ بِأَعْيَانِهِمَا، وَعِنْدَ مُحَمَّدٍ لَا يَجُوزُ.
(وَجْهُ) قَوْلِهِ: إنَّ الْفُلُوسَ أَثْمَانٌ فَلَا يَجُوزُ بَيْعُهَا بِجِنْسِهَا مُتَفَاضِلًا كَالدَّرَاهِمِ، وَالدَّنَانِيرِ، وَدَلَالَةُ الْوَصْفِ عِبَارَةٌ عَمَّا تُقَدَّرُ بِهِ مَالِيَّةُ الْأَعْيَانِ، وَمَالِيَّةُ الْأَعْيَانِ كَمَا تُقَدَّرُ بِالدَّرَاهِمِ، وَالدَّنَانِيرِ تُقَدَّرُ بِالْفُلُوسِ فَكَانَتْ أَثْمَانًا؛ وَلِهَذَا كَانَتْ أَثْمَانًا عِنْدَ مُقَابَلَتِهَا بِخِلَافِ جِنْسِهَا، وَعِنْدَ مُقَابَلَتِهَا بِجِنْسِهَا حَالَةَ الْمُسَاوَاةِ، وَإِنْ كَانَتْ ثَمَنًا فَالثَّمَنُ لَا يَتَعَيَّنُ، وَإِنْ عُيِّنَ كَالدَّرَاهِمِ، وَالدَّنَانِيرِ فَالْتَحَقَ التَّعَيُّنُ فِيهِمَا بِالْعَدَمِ فَكَانَ بَيْعُ الْفَلْسِ بِالْفَلْسَيْنِ بِغَيْرِ أَعْيَانِهِمَا، وَذَا لَا يَجُوزُ؛ وَلِأَنَّهَا إذَا كَانَتْ أَثْمَانًا فَالْوَاحِدُ يُقَابِلُ الْوَاحِدَ فَبَقِيَ الْآخَرُ فَضْلَ مَالٍ لَا يُقَابِلُهُ عِوَضٌ فِي عَقْدِ الْمُعَاوَضَةِ، وَهَذَا تَفْسِيرُ الرِّبَا
[4] بدائع الصنائع في ترتيب الشرائع (7/ 217) [العلمية]
(وَأَمَّا) الْفُلُوسُ الرَّائِجَةُ فَإِنْ قُوبِلَتْ بِخِلَافِ جِنْسِهَا فَهِيَ أَثْمَانٌ وَكَذَا إنْ قُوبِلَتْ بِجِنْسِهَا مُتَسَاوِيَةً فِي الْعَدَدِ، وَإِنْ قُوبِلَتْ بِجِنْسِهَا مُتَفَاضِلَةً فِي الْعَدَدِ فَهِيَ مَبِيعَةٌ عِنْدَ أَبِي حَنِيفَةَ، وَأَبِي يُوسُفَ، وَعِنْدَ مُحَمَّدٍ هِيَ أَثْمَانٌ عَلَى كُلِّ حَالٍ، وَاَللَّهُ - عَزَّ وَجَلَّ - أَعْلَمُ
بدائع الصنائع في ترتيب الشرائع (7/ 224) [العلمية]
وَمِنْهَا مَا يُشْتَرَطُ فِيهِ الْقَبْضُ مِنْ أَحَدِ الْجَانِبَيْنِ كَبَيْعِ الدَّرَاهِمِ بِالْفُلُوسِ
[5] الهداية في شرح بداية المبتدي (3/ 116) [رحمانية]
قال: "ويجوز البيع بالفلوس" لأنها مال معلوم، فإن كانت نافقة جاز البيع بها وإن لم تتعين لأنها أثمان بالاصطلاح، وإن كانت كاسدة لم يجز البيع بها حتى يعينها لأنها سلع فلا بد من تعيينها
النتف في الفتاوى للسغدي (277) [العلمية]
وَالثمن على ثَمَانِيَة اوجه
اولها الْفضة وَيجوز ان يَشْتَرِي نَقْدا اَوْ نَسِيئَة وَهُوَ ان يَشْتَرِي بِالْفِضَّةِ شَيْئا اَوْ بِالدَّرَاهِمِ وَيجوز ان تكون الدَّرَاهِم وَالْفِضَّة نَقْدا اَوْ نَسِيئَة الى وَقت
وَالثَّانِي الذَّهَب وَالدَّنَانِير وَهِي كَمَا ذكرنَا من حَال الْفضة وَالدَّرَاهِم
الثَّالِث الْمكيل يجوز ان يشترى بِهِ شَيْئا نَقْدا اَوْ نَسِيئَة اذا كَانَ بَين جنسه ومقداره وَصفته
وَالرَّابِع الْمَوْزُون وَحكمه كَمَا ذكرنَا من حكم الْمكيل
وَالْخَامِس المذروع وَيجوز ان يشترى بِهِ شَيْئا نَقْدا اَوْ نَسِيئَة اذا بَين جنسه ومقداره وَصفته واجله عِنْدهم وَعند الشَّيْخ يجوز وان لم يبين الاجل
وَالسَّادِس الْحَيَوَان يجوز ان يَشْتَرِي بِهِ نَقْدا وَلَا يجوز ان يَشْتَرِي بِهِ نَسِيئَة فِي قَوْلهم جَمِيعًا
وَالسَّابِع المعدودات يجوز ان يَشْتَرِي بهَا نَقْدا اَوْ نَسِيئَة اذا لم يكن بَينهمَا تفَاوت
وَالثَّامِن الْعقار يجوز ان يَشْتَرِي بِهِ نَقْدا وَلَا يجوز ان يَشْتَرِي بِهِ نَسِيئَة لَان الْعقار والعواري لَا يحْتَاج الى الاجل
وَكَذَلِكَ سَائِر الاشياء اذا كَانَت مُعينَة وَالْمَبِيع ايضا على هَذِه الْوُجُوه الثَّمَانِية الى اخرها كَمَا فسرنا فِي الثّمن
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