interest and islam

[syedshiraz]

I understand that you are baffled by this. Try to understand that, islamic laws came in to effect long before our current economic system. Barter system was the system that our Prophet Mohammad PBUH used to trade under which is completely legal under Shariah Laws. Money was made not to be a commodity but merely to represent value. Islam also demands the same thing from money and any other thing which could be used as a replacement. When you borrow money from a bank, they charge you interest like lending you the money for rent. Sadly as things got more complicated, and people started marking things as there own and later borders were drawn, trade became necessary. Later, as some countries got more power and others got less, they wanted the system tailored to suit things according to them and hence every country got there own currency. Later, Interest rate started to play its role in a lot of things and ALLHMDULILLAH our Islamic Laws are so true, that they were completely right about the interest rate being haram. You see, through time the Interest rate has created more problems and confusions than most instruments in the financial world, and being the integral element in almost all valuations it is a nuisance. As new IFRS's and IAS's persevere to make accounting and finance fair, they are merely struggling and fooling themselves into believing that they are actually succeeding. Try to understand money and the system and you will get your answer how lucky you are if you follow the QURAN. Everything ISLAM tells us has a reason.