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Sahih Muslim 1596a (Book 22, Hadith 127) #11203
Exchange of Gold & Silver

SUMMARY: This hadith explains that exchanging gold for gold and silver for silver should be done with equal amounts, and any additional amount given or taken is considered interest.

Abu Salih reported: I heard Abu Sa'id al-Khudri (Allah be pleased with him) said: Dinar (gold) for gold and dirham for dirham can be (exchanged) with equal for equal; but he who gives more or demands more in fact deals in interest. I sald to him: Ibn 'Abbas (Allah be pleased with them) says otherwise, whereupon he said: I met Ibn 'Abbas (Allah be pleased with them) and said: Do you see what you say; have you heard it from Allah's Messenger , or found it in the Book of Allah, the Glorious and Majestic? He said: I did not hear it from Allah's Messenger . and I did not find it in the Book of Allah (Glorious and Majestic), but Usama b. Zaid narrated it to me that Allah's Apostle said: There can be an element of interest in credit.
حَدَّثَنِي مُحَمَّدُ بْنُ عَبَّادٍ، وَمُحَمَّدُ بْنُ حَاتِمٍ، وَابْنُ أَبِي عُمَرَ، جَمِيعًا عَنْ سُفْيَانَ بْنِ، عُيَيْنَةَ - وَاللَّفْظُ لاِبْنِ عَبَّادٍ - قَالَ حَدَّثَنَا سُفْيَانُ، عَنْ عَمْرٍو، عَنْ أَبِي صَالِحٍ، قَالَ سَمِعْتُ أَبَا سَعِيدٍ الْخُدْرِيَّ، يَقُولُ الدِّينَارُ بِالدِّينَارِ وَالدِّرْهَمُ بِالدِّرْهَمِ مِثْلاً بِمِثْلٍ مَنْ زَادَ أَوِ ازْدَادَ فَقَدْ أَرْبَى ‏.‏ فَقُلْتُ لَهُ إِنَّ ابْنَ عَبَّاسٍ يَقُولُ غَيْرَ هَذَا ‏.‏ فَقَالَ لَقَدْ لَقِيتُ ابْنَ عَبَّاسٍ فَقُلْتُ أَرَأَيْتَ هَذَا الَّذِي تَقُولُ أَشَىْءٌ سَمِعْتَهُ مِنْ رَسُولِ اللَّهِ أَوْ وَجَدْتَهُ فِي كِتَابِ اللَّهِ عَزَّ وَجَلَّ فَقَالَ لَمْ أَسْمَعْهُ مِنْ رَسُولِ اللَّهِ وَلَمْ أَجِدْهُ فِي كِتَابِ اللَّهِ وَلَكِنْ حَدَّثَنِي أُسَامَةُ بْنُ زَيْدٍ أَنَّ النَّبِيَّ قَالَ ‏ "‏ الرِّبَا فِي النَّسِيئَةِ

TOPICS
dinar  *  exchange  *  gold  *  silver  *  interest  *  tawariq  *  dirham  *  riba

QUICK LESSONS:
Trade fairly without taking advantage of others by giving more or demanding more than what was agreed upon initially .

EXPLANATIONS:
This hadith explains the Islamic ruling on exchanging gold and silver. It is permissible to exchange equal amounts of gold for gold, or silver for silver, but any additional amount given or taken is considered interest which is forbidden in Islam. The hadith was narrated by Abu Salih who heard it from Abu Sa'id al-Khudri, as well as Usama b. Zaid who also narrated it to him. The Prophet Muhammad ﷺ taught us that we should not take advantage of others when trading goods and services, but rather we should be fair in our dealings with one another so that everyone benefits equally from the transaction. We must remember this teaching when engaging in any kind of trade so that we can ensure justice and fairness are upheld at all times.

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