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Sunan Ibn Majah 2260 (Book 12, Hadith 124) #31612
Exchange Goods on Spot to Avoid Usury

SUMMARY: The hadith is about the prohibition of usury and the importance of exchanging goods on the spot.

It was narrated that Malik bin Aws bin Hadathan said: "I came saying'.Who will exchange Dirham?' Talhah bin 'Ubaidullah, who was with 'Umar bin Khattab, said: 'Show us your gold, then come to us; when our treasure comes, we will give you your silver'. 'Umar said: 'No, by Allah, you will give him silver (now), or give him back his gold, for the Messenger of Allah said: "Silver for gold is usury, unless it is exchanged on the spot"'.
حَدَّثَنَا مُحَمَّدُ بْنُ رُمْحٍ، أَنْبَأَنَا اللَّيْثُ بْنُ سَعْدٍ، عَنِ ابْنِ شِهَابٍ، عَنْ مَالِكِ بْنِ أَوْسِ بْنِ الْحَدَثَانِ، قَالَ أَقْبَلْتُ أَقُولُ مَنْ يَصْطَرِفُ الدَّرَاهِمَ فَقَالَ طَلْحَةُ بْنُ عُبَيْدِ اللَّهِ وَهُوَ عِنْدَ عُمَرَ بْنِ الْخَطَّابِ أَرِنَا ذَهَبَكَ ثُمَّ ائْتِنَا إِذَا جَاءَ خَازِنُنَا نُعْطِكَ وَرِقَكَ ‏.‏ فَقَالَ عُمَرُ كَلاَّ وَاللَّهِ لَتُعْطِيَنَّهُ وَرِقَهُ أَوْ لَتَرُدَّنَّ إِلَيْهِ ذَهَبَهُ فَإِنَّ رَسُولَ اللَّهِ ـ ـ قَالَ ‏ "‏ الْوَرِقُ بِالذَّهَبِ رِبًا إِلاَّ هَاءَ وَهَاءَ

TOPICS
usury  *  exchange  *  spot  *  riba  *  taqabala

QUICK LESSONS:
Exchange goods on spot without any interest rates attached.

EXPLANATIONS:
This hadith is about usury and how it should be avoided. Usury is a type of transaction where one party lends money to another with an interest rate attached. This practice was prohibited by Prophet Muhammad (peace be upon him). In this hadith, Talhah bin 'Ubaidullah was trying to exchange gold for silver with an interest rate attached. However, 'Umar bin Khattab reminded him that this was not allowed as it goes against what Prophet Muhammad said - "Silver for gold is usury, unless it is exchanged on the spot". Therefore, this hadith teaches us that we should avoid usurious transactions and instead exchange goods on the spot in order to avoid any form of exploitation or unfairness.

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