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Jami at-Tirmidhi 1243 (Book 14, Hadith 43) #26816
The Prohibition of Usury and Hand to Hand Exchange

SUMMARY: This hadith is about the prohibition of Riba (usury) and the importance of exchanging goods hand to hand.

Narrated Ibn Shihab: From Malik bin Aws bin Hadathan that he said: "I once said: 'Who can change some Dirham?' So Talhah bin 'Ubaidullah - and he was with 'Umar bin Al-Khattab - said: "Leave your gold with us, then return to us when our servant comes and we will give you your silver"'.Umar bin Al-Khattab said: "No! By Allah! Either give him his silver or return his gold to him. Indeed the Messenger of Allah said: 'Silver for gold is Riba, except for hand to hand; and wheat for wheat is Riba except for hand to hand; and barley for barley is Riba except hand to hand; and dried-dates for dried-dates is Riba except for hand to hand'." Abu 'Eisa said: This Hadith is Hasan Sahih. This is acted upon according to the people of knowledge. And the meaning of Ha' Wa Ha' is hand to hand.
حَدَّثَنَا قُتَيْبَةُ، حَدَّثَنَا اللَّيْثُ، عَنِ ابْنِ شِهَابٍ، عَنْ مَالِكِ بْنِ أَوْسِ بْنِ الْحَدَثَانِ، أَنَّهُ قَالَ أَقْبَلْتُ أَقُولُ مَنْ يَصْطَرِفُ الدَّرَاهِمَ فَقَالَ طَلْحَةُ بْنُ عُبَيْدِ اللَّهِ وَهُوَ عِنْدَ عُمَرَ بْنِ الْخَطَّابِ أَرِنَا ذَهَبَكَ ثُمَّ ائْتِنَا إِذَا جَاءَ خَادِمُنَا نُعْطِكَ وَرِقَكَ ‏.‏ فَقَالَ عُمَرُ كَلاَّ وَاللَّهِ لَتُعْطِيَنَّهُ وَرِقَهُ أَوْ لَتَرُدَّنَّ إِلَيْهِ ذَهَبَهُ فَإِنَّ رَسُولَ اللَّهِ قَالَ ‏"‏ الْوَرِقُ بِالذَّهَبِ رِبًا إِلاَّ هَاءَ وَهَاءَ وَالْبُرُّ بِالْبُرِّ رِبًا إِلاَّ هَاءَ وَهَاءَ وَالشَّعِيرُ بِالشَّعِيرِ رِبًا إِلاَّ هَاءَ وَهَاءَ وَالتَّمْرُ بِالتَّمْرِ رِبًا إِلاَّ هَاءَ وَهَاءَ ‏"‏ ‏.‏ قَالَ أَبُو عِيسَى هَذَا حَدِيثٌ حَسَنٌ صَحِيحٌ ‏.‏ وَالْعَمَلُ عَلَى هَذَا عِنْدَ أَهْلِ الْعِلْمِ ‏.‏ وَمَعْنَى قَوْلِهِ ‏"‏ إِلاَّ هَاءَ وَهَاءَ ‏"‏ يَقُولُ يَدًا بِيَدٍ

TOPICS
usury  *  exchange  *  riba  *  ha

QUICK LESSONS:
Avoid usury; Trade goods directly from one person’s hand into another’s; Be honest and fair when conducting business dealings; Follow Prophet Muhammad’s teachings on trade practices.

EXPLANATIONS:
This hadith is narrated by Malik bin Aws bin Hadathan who said that he asked someone if they could change some Dirham for him. Talhah bin 'Ubaidullah who was with Umar at the time offered to keep his gold until their servant came back and then give him silver in exchange. However, Umar refused this offer and reminded them that according to Prophet Muhammad's teachings, exchanging silver for gold or wheat for wheat or barley for barley is considered usury except when it is done directly from one person's hand into another's - known as ha' wa ha'. This hadith teaches us that usury or interest should be avoided as it can lead people into financial hardship. It also emphasizes the importance of trading goods directly from one person's hand into another's in order to avoid any form of exploitation or unfairness in transactions.

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