Shari’a prohibits riba al-fadhl on the grounds that it involves injustice, deception, and trickery. In Islamic finance, there is no consideration for qualities when dealing in ribawi items (basically: wheat, barley, salt, dates, and of course gold and silver). As such, ribawi goods of high quality and poor quality should be exchanged at par, regardless of quality. This is to ensure that quality is not used as a pretext to trade on the basis of riba. Therefore, it is often said that the prohibition of riba al-fadhl will shut all doors or zharai’ that lead to riba.
Islamic Finance
See also
- Why Is Riba al-Nasi’ah Haram?
- What is the Difference Between Ijara Muntahia Bittamleek and Ijara Thumma Bay’?
- What Is the Difference Between al-Ghubn and al-Gharar?
- What Is the Difference Between Murabaha Financing and Lending on Interest?
- What Is the Shari’a Ruling for Options?
- Are Swaps Permitted by Shari’a?
- What Is the Difference Between Khiyar al-Aib and Khiyar al-Tadlees?
- What Is the Difference Between Fiqh and Shari’ah?
- What is the Difference Between Profit and Yield?
- What is the Difference Between Yad al-Amanah and Yad al-Dhaman?
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