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Sunan an-Nasai 4577 (Book 44, Hadith 129) #19110
Exchange of Silver and Gold on Credit Forbidden

SUMMARY: The Prophet Muhammad (PBUH) forbade the exchange of silver for gold on credit.

Abu Al-Minhal said: "I asked Al-Bara bin 'Azib about money exchange. He said: 'Ask Zaid bin Arqam, for he is better than me and more knowledgeable'. So I asked Zaid and he said: 'Ask Al-Bara for he is better than me and more knowledgeable'. And they both said: 'The Messenger of Allah forbade (selling) silver for gold on credit"'.
أَخْبَرَنَا أَحْمَدُ بْنُ عَبْدِ اللَّهِ بْنِ الْحَكَمِ، عَنْ مُحَمَّدٍ، قَالَ حَدَّثَنَا شُعْبَةُ، عَنْ حَبِيبٍ، قَالَ سَمِعْتُ أَبَا الْمِنْهَالِ، قَالَ سَأَلْتُ الْبَرَاءَ بْنَ عَازِبٍ عَنِ الصَّرْفِ، فَقَالَ سَلْ زَيْدَ بْنَ أَرْقَمَ فَإِنَّهُ خَيْرٌ مِنِّي وَأَعْلَمُ ‏.‏ فَسَأَلْتُ زَيْدًا فَقَالَ سَلِ الْبَرَاءَ فَإِنَّهُ خَيْرٌ مِنِّي وَأَعْلَمُ فَقَالاَ جَمِيعًا نَهَى رَسُولُ اللَّهِ عَنِ الْوَرِقِ بِالذَّهَبِ دَيْنًا

TOPICS
exchange  *  silver  *  gold  *  credit  *  tawariq  *  fiddah  *  dhahab  *  qardh

QUICK LESSONS:
Be honest in your dealings with others; Pay your debts promptly; Do not take advantage from someone's ignorance or lack of knowledge when it comes to financial matters; Follow Islamic teachings regarding money exchange transactions; Respect other people's rights over their property/money etc..

EXPLANATIONS:
This hadith is about the prohibition of exchanging silver for gold on credit. It was narrated by Abu Al-Minhal who asked both Al-Bara bin 'Azib and Zaid bin Arqam about money exchange. Both of them said that the Messenger of Allah forbade it. This hadith teaches us that we should not take part in any kind of transaction which involves taking or giving something on credit as it is forbidden in Islam. We should always pay our debts as soon as possible and not delay them unnecessarily. We should also be honest in our dealings with others and never try to deceive anyone or take advantage of their ignorance or lack of knowledge when it comes to financial matters.

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