01-20-2007, 04:08 PM
Salam Buddies,
I have just joined the site and read the discussion. Islamic banking is my favorite one.
I think in all the discussion we are forgetting one thing, that there is hell of a difference between the economic scenarios of that time when the rule was formed and now.
As Sajid Naveed Khan has stated
<font face="Times New Roman">Prophet sallallahu alaihe wasallm said Gold in exchange for gold, silver in exchange for silver, wheat in exchange for wheat, barley in exchange for barley, dates in exchange for dates, salt in exchange for salt is in the same category and (should be exchanged) hand to hand, so who ever adds or demands increase he has practised usury. The giver and taker are the same. </font id="Times New Roman"> Now that was the time when paper money was not there, there were no rules, regulations and economics was just a new concept. If you carefully analyze, there was no concept of inflation and real money at that time. If you give 5 million to someone and receive the same amount after a year or two, you have made a loss because due to the inflation the 5 million might have lost its value to 4 million. If you could buy 5 Kg of gold at that time now you can buy just 4 Kg of it.
According to the hadith stated above you may ask the borrower to return you the money by which you can get the same amount of gold i.e. approx 62.5million.
The inflation represents the general increase of all the goods being trade in an economy.
So interest rate equivalent to inflation rate should not be haram.
This topic is already being discussed in another forum in
Accounting and Audit > Interest and Islam
I have just joined the site and read the discussion. Islamic banking is my favorite one.
I think in all the discussion we are forgetting one thing, that there is hell of a difference between the economic scenarios of that time when the rule was formed and now.
As Sajid Naveed Khan has stated
<font face="Times New Roman">Prophet sallallahu alaihe wasallm said Gold in exchange for gold, silver in exchange for silver, wheat in exchange for wheat, barley in exchange for barley, dates in exchange for dates, salt in exchange for salt is in the same category and (should be exchanged) hand to hand, so who ever adds or demands increase he has practised usury. The giver and taker are the same. </font id="Times New Roman"> Now that was the time when paper money was not there, there were no rules, regulations and economics was just a new concept. If you carefully analyze, there was no concept of inflation and real money at that time. If you give 5 million to someone and receive the same amount after a year or two, you have made a loss because due to the inflation the 5 million might have lost its value to 4 million. If you could buy 5 Kg of gold at that time now you can buy just 4 Kg of it.
According to the hadith stated above you may ask the borrower to return you the money by which you can get the same amount of gold i.e. approx 62.5million.
The inflation represents the general increase of all the goods being trade in an economy.
So interest rate equivalent to inflation rate should not be haram.
This topic is already being discussed in another forum in
Accounting and Audit > Interest and Islam
