Chapter on Usury and Currency Exchange

Linguistically, ribā (usury) means increase, as in Allah’s saying: “Then, when We send down water upon it, it stirs and swells” [Fussilat 41:39]—that is, it stirs with its trees and herbage, and “swells” means increases. What is meant is not the earth itself, but rather what grows in it.

In Islamic law, it is an increase in certain things and a deferment in certain things. It could be defined by saying: ribā al-faḍl (usury of excess) is disparity in the sale of each category of ribā-applicable property for the same category, while ribā al-nasī’ah (usury of deferment) is delaying possession in transactions involving ribā-applicable property.

Not every increase is ribā in Islamic law, nor is every increase in a sale ribā, if the two items sold are among those in which disparity is permissible. Thus, if you sell one car for two cars, there is nothing wrong with it; or one book for two books, there is nothing wrong with it. For not every increase constitutes ribā. Rather, the increase that constitutes ribā is one occurring in a contract between two things for which disparity is prohibited. Its explanation will come, Allah willing. As for currency exchange, its definition will also follow.

Ribā is prohibited by the Quran, the sunnah, and the consensus of the Muslims. It ranks among the major sins, for Allah Most High says: “And whoever returns [to it]—they are the people of the Fire; they will remain therein forever” [al-Baqarah 2:275]. And He says: “O you who believe, fear Allah and give up what remains due to you of ribā, if you are believers. But if you do not, then be warned of war from Allah and His Messenger” [al-Baqarah 2:278–279]. And because the Messenger of Allah ﷺ said: “Allah has cursed the one who consumes ribā, the one who pays it, its two witnesses, and its scribe,” and he said: