Filter by Categories
Accounting
Banking

Islamic Finance




Mithlan Bi Mithl


Arabic (مثلاً بمثل) for like for like. Ribawi items (such as gold, silver, dates, wheat, etc) cannot be exchanged (i.e., different quantities of the same item being bartered), from a shari’a standpoint, unless like for like (mithlan bi mithl), among others. The prophetic maxim states: “do not sell gold for gold, except like for like (mithlan bi mithl), and do not increase something of it upon something; and do not sell silver for sliver unless like for like, and do not increase something of it upon something, and do not sell for ready money (cash) something that is not readily available/ present, but yadan bi yadin/ hand to hand (Muslim, no. 3845).

Mithlan bi mithl means weight for weight. In other words, shari’a prohibits exchanging standard-quality wheat for premium wheat unless the two weights are equal, irrespective of quality. This shari’a stance aims to block all means to riba al-fadhl (surplus usury or differential usury).



ABC
The last three decades have witnessed the modern rebirth of Islamic finance both in terms of literature and practice. Islamic banks and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*