Rules on riba (Summary by Imam Nawavi): 3 differing scenarios: 1. When the underlying ‘Illah of the two goods being exchanged is different, shortfall/excess and delay both are permissible, e.g. the exchange of gold for wheat or dollars for a car. 2. When the commodities of exchange are similar, excess and delay both are prohibited, e.g. gold for gold or wheat for wheat, dollars for dollars, etc. 3. When the commodities of exchange are heterogeneous but the ‘Illah is the same, as in the case of exchanging gold for silver or US Dollars for Japanese Yen (medium of exchange) or wheat for rice (the ‘Illah being edibility), then excess/deficiency is allowed, but delay in exchange is not allowed.
Posted on: Fri, 27 Sep 2013 07:50:35 +0000