other monetary genera—whether gold, silver, or anything else—when the settlement is deferred in any way. Hence, it is not permissible, for example, to sell U.S. dollars for five Saudi riyals, or for any amount above or below that, on credit.
(b) It is likewise impermissible to sell one genus of it for itself in unequal amounts, whether the exchange is deferred or hand-to-hand. Thus ten Saudi riyals in paper currency may not be sold for eleven Saudi riyals in paper currency.
(c) It is permissible to exchange one of its genera for a different genus without restriction, provided the transaction is hand-to-hand. Accordingly, one may sell a Syrian or Lebanese lira for one Saudi riyal in paper currency—or for silver—whether the amount is less or more; and one may sell a U.S. dollar for three Saudi riyals, or for any amount above or below that, so long as payment is immediate.
The same ruling of permissibility applies to selling a silver Saudi riyal for three Saudi riyals in paper—or for any greater or lesser amount—when the exchange is spot, because this is regarded as trading one genus for another; the common name does not change the fact that the two are essentially different.
The position adopted by the Council of Senior Scholars is the very one affirmed by the Islamic Fiqh Council of the Muslim World League and later by the Islamic Fiqh Academy of the Organisation of the Islamic Conference in Jeddah; there is therefore no need to prolong the discussion by quoting their respective resolutions.
- Ibn al-Qayyim said: “It is permissible to sell crafted items of gold or silver for the same metal without requiring equality, the excess constituting payment for the workmanship.”
The Council of Senior Scholars, however, issued a ruling that it is not permissible to sell manufactured gold or silver for the same metal in unequal amounts, even if the disparity is justified as compensation for craftsmanship in one of the two considerations; this is what the general purport of the hadiths indicates.
- The scholarly disagreement: The scholars are unanimous that ribā applies to the six categories mentioned in the hadith—