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Islamic Finance




Bay al-Mubadalah


A type of sale (bay’) that involves the exchange of one commodity for another without using a medium of exchange (i.e., money). In this sense, it has the same meaning of bay’ al-muqayadhah (barter sale). Bai al-mubadala may also refer to a sale transaction in which the sale price is equal to the original acquisition price (i.e., bay’ al-tawliyah or par value sale).

This sale (in Arabic script بيع المبادلة) may also refer to the exchange of dirhams and dinars based on their quantities rather than on their count.



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