Filter by Categories
Accounting
Banking

Islamic Finance




Why Is Riba al-Fadhl Haram?


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.



Questions and Answers
This section contains quite a vast collection of easy-to-understand explanatory manuals, practical guides, and best practices how-tos covering the main themes of this ...
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