Hukum Forex Dalam Islam Mui




Hukum Forex Dalam Islam MuiHukum Forex Trading Menurut MUI Halal atau Haram Hukum Forex Trading Menurut MUI Halal atau Haram Mengingat banyaknya yang mempertanyakan negociacao forex apa hukum menurutIslam (dikupas Banyak Meski sudah) maka berikut ini saya publicar artikel dari Gainscope tentang fatwa MUI TENTANG negociacao forex. Di luar sana berkembang juga pendapat yang bersebarangan dengan fatwa MUI ini di mana mereka tetap berpendirian pada bahwa negociacao forex adalah HARAM dengan hujjah / argumen yang mereka pegangi. Keputusan berpulang pada dan ada di tangan Anda. Selamat membaca. 1. Apakah Trading Forex Haram 2. Apakah Negociacao Forex Halal 3. Apakah Trading Forex diperbolehkan dalam Agama Islao 4. Apakah SWAP itu Mari kita (AL-SHARF) Bahas dengan artikel yang pertama: Forex Dalam Hukum Isla Dalam bukunya Prof. Drs. Masjfuk Zuhdi yang berjudul MASAIL FIQHIYAH Kapita Selecta Hukum Islao, diperoleh bahwa Forex (Perdagangan Valas) diperbolehkan dalam hukum islam. Perdagangan valuta asing timbul karena adanya perdagangan barang-barang kebutuhan / komoditi antar negara yang bersifat internasional. Perdagangan (Ekspor-Impor) ini tentu memerlukan alat bayar yaitu uang yang-Masing Masing negara mempunyai ketentuan Sendiri dan berbeda satu sama Mistos sesuai dengan penawaran dan permintaan diantara negara-negara tersebut sehingga Timbul PERBANDINGAN Nilai MATA uang antar negara. Perbandingan nilai mata uang antar negara terkumpul dalam suatu BURSA atau PASAR yang bersifat internasional dan terikat dalam suatu kesepakatan bersama yang saling menguntungkan. Nilai mata uang suatu negara dengan negara lainnya ini berubah (berluktuasi) setiap saat sesuai volume permintaan dan penawarannya. Adanya permintaan dan penawil inilah yang menimbulkan transaksi mata uang. Yang secara nyata hanyalah tukar-menukar mata uang yang berbeda nilai. HUKUM ISLAM dalam TRANSAKSI VALAS 1. Ada Ijab-Qobul. --- gt Ada perjanjian untuk memberi dan menerima Um penjual menyerahkan barang dan pembeli membayar tunai. Ijab-Qobulnya dilakukan dengan lisan, tulisan dan utusan. Pembeli dan penjual mempunyai wewenang Penuh melaksanakan dan melakukan tindakantindakan hukum (dewasa dan berpikiran Sehat) 2. Memenuhi syarat menjadi objek transaksi yaitu jual-beli: Suci barangnya (najis bukan) Dapat dimanfaatkan Dapat diserahterimakan Jelas Barang dan harganya Dijual (dibeli) Sendiri Oleh pemiliknya Atau, kuasanya, atas, izin, pemiliknya, Barang, sudah, berada, ditangannya, jika, barangnya, diperoleh, dengan, imbalan. Perlu ditambahkan pendapat Muhammad Isa, bahwa jual beli saham itu diperbolehkan dalam agama. Jangan kamu membeli ikan dalam ar, karena sesungguhnya jual beli yang demikian itu mengandung penipuan. (Hadis Ahmad bin Hambal dan Al Baihaqi dari Ibnu Masud) Jual beli barang yang tidak di diaturat transaksi diperbolehkan dengan syarat harus diterangkan sifatsifatnya atau ciri-cirinya. Kemudiano jika barang sesuai dengan keterangan penjual, maka sahlah jual belinya. Tetapi jika tidak sesuai, maka, pembeli, mempunyai, hak khiyar, artinya boleh, meneruskan, atau, membatalkan, jual belinya. Hal ini sesuai dengan hadis Nabi riwayat Al Daraquthni dari Abu Hurairah: 8220Barang siapa yang membeli sesuatu yang ia tidak melihatnya, maka ia berhak khiyar jika ia telah melihatnya. Jual beli Hasil tanam yang terpendam masih, ketela seperti, kentang, Bawang dan sebagainya juga diperbolehkan, asal diberi contohnya, Karena akan mengalami kesulitan atau kerugian jika Harus mengeluarkan Semua Hasil Tanaman yang terpendam untuk dijual. Hal ini sesuai dengan kaidah hukum Islam: 8220Kesulitan itu menarik kemudahan.8221 Demikian juga jual beli Barang-Barang yang telah terbungkus / tertutup, seperti makanan kalengan, LPG, dan sebagainya, asalkam rotulo diberi yang menerangkan isinya. Vide Sabiq, op. Cit. Hal 135. Mengenai teks kaidah hukum Islao tersebut di atas, vide Al Suyuthi, Al-Asbah al-Nadzair, Mesir, Mustafa Muhammad, 1936 hal. 55. JUAL BELI VALUTA ASSISTENTE DAN SAHAM Yang dimksud dengan valga asing adalah mata uang luar negeri seperi dolar Amerika, sterling inggris, ringgit Malasia dan sebagainya. Apabila antara negara terjadi perdagangan internasional maka tiap negara membutuhkan valuta asing untuk alat bayar luar negeri yang dalam dunia perdagangan disebut devisa. Misalnya eksportir Indonesia Azerbaijao Azerbaijao Azerbaijao Azerbaijao Pedido de Propostas Aviso de pre - Dengan demikian akan timbul pena de perminataan di bursa valuta asing. Setiap, negara, berwenang, penuh, menetapkan, kurs, uangnya, masing-masing (kurs, adalah, perbandingan, nilai, uangnya, terhadap, mata uang, asing), misalnya 1 dolar Amerika Rp. 12.000. Namun kurs uang atau perbandingan nilai tukar setiap saat bisa berubah-ubah, tergantung pada kekuatan ekonomi negara masing-masing. Kurs Pencatatan uang dan transaksi jual beli valuta asing diselenggarakan di Bursa Valuta asing (AWJ Tupanno, et al Ekonomi dan Koperasi, Jacarta, Depdikbud 1982, hal 76-77..) fatwa MUI TENTANG PERDAGANGAN Valas Fatwa Dewan Syariah Nasional Majelis Ulama Indonesia Nenhuma: 28 / DSN-MUI / III / 2002 tentaculo Jual Beli Mata Uang (Al-Sharf) a. Bahwa dalam sejumlah kegiatan untuk memenuhi berbagai keperluan, seringkali diperlukan transaksi jual-beli mata uang (al-sharf), baik antar mata uang sejenis maupun antar mata uang berlainan jenis. B. Bahwa dalam urf tijari (tradicao perdagangan) transaksi jual beli mata uang dikenal beberapa bentuk transaksi yang estado hukumnya dalam pandangan ajaran islao berbeda antara satu bentuk dengan bentuk lain. C. Bahwa agar kegiatan transaksi tersebut dilakukan sesuai dengan ajaran islam, DSN memandang perlu menetapkan fatwa tentang al-Sharf untuk dijadikan pedoman. 1. Firman Allah, QS. Al-Baqarah2: 275:. Dan Allah telah menghalalkan jual beli dan mengharamkan riba. 2. Hadis nabi riwayat al-Baihaqi dan Ibnu Majah dari Abu Said al-Khudri: Rasulullah SAW bersabda, Sesungguhnya jual beli itu hanya Boleh dilakukan atas dasar kerelaan (antara kedua Belah pihak) (HR albaihaqi dan Ibnu Majah, dan dinilai shahih Oleh. Ibnu Hibban). 3. Hadis Nabi Riwayat Muculmano, Abu Daud, Tirmidzi, Nasai, dan Ibn Majah, dengan teks muculmanos dari Ubadah bin Shamit, Nabi viu bersabda: (Juallah) emas dengan emas, perak dengan perak, gandum dengan gandum, syair dengan syair, kurma Dengan kurma, garam dengan garam (denga syarat harus) sama dan sejenis serta secara tunai. 4. Hadis Nabi riwayat Muculmanos, Tirmidzi, Nasai, Abu Daud, Ibnu Majah, dan Ahmad, dari Umar bin Khattab, Nabi viu bersabda: (Jual-beli) emas dengan perak adalah Riba kecuali (dilakukan) secara tunai. 5. Hadis Nabi riwayat muculmana dari Abu Said al-Khudri, Nabi viu bersabda: Janganlah kamu menjual emas dengan emas kecuali sama (nilainya) dan janganlah menambahkan sebagian atas sebagian yang deitado janganlah menjual perak dengan perak kecuali sama (nilainya) dan janganlah sebagaian menambahkan Atas sebagian yang lain dan janganlah menjual emas perak tersebut yang tidak tunai dengan yang tunai. 6. Hadis Nabi riwayat muculmanos dari Bara bin Azib dan Zaid bin Arqam. Rasulullah viu melarang menjual perak dengan emas secara piutang (tidak tunai). 7. Hadis Nabi riwayat Tirmidzi dari Amr bin Auf: Perjanjian dapat dilakukan di antara kaum Muslimin, kecuali perjanjian yang mengharamkan yang atau halal menghalalkan yang haram dan kaum Muslimin terikat dengan syarat-syarat mereka kecuali syarat yang mengharamkan yang atau halal menghalalkan yang haram. 8. Ijma. Ulama sepakat (ijma) bahwa akad al-sharf disyariatkan denga syarat-syarat tertentu 1. Surat dari pimpinah Unidade Usaha Syariah Banco BNI no. UUS / 2/878 2. Pendapat peserta Rapat Pleno Dewan Syariah Nasional pada Hari Kamis, tanggal 14 Muharram 1423H / 28 de marco de 2002. Dewan Syariah Nasional Menetapkan. FATWA TENTANG JUAL BELI MATA UANG (AL-SHARF). Pertama. Ketentuan Umum Transaksi jual beli mata uang pada prinsipnya boleh dengan ketentuan sebagai berikut: 1. Tidak untuk spekulasi (untung-untungan). 2. Ada kebutuhan transaksi atau untuk berjaga-jaga (simpanan). 3. Apabila transaksi dilakukan terhadap mata uang sejenis maka nilainya harus sama e secara tunai (at-taqabudh). 4. Apabila berlainan jenis maka, harus, dilakukan, dengan, nilai, tukar (kurs), yang, berlaku, pada saat transaksi dan secara tunai. Kedua. Jenis-Jenis transaksi Valuta Asing 1. Transaksi SPOT, yaitu transaksi pembelian dan penjualan valuta asing untuk penyerahan pada saat itu (over the counter) atau penyelesaiannya empalidecendo lambat dalam jangka waktu dua hari. Hukumnya adalah boleh, Karena dianggap tunai, sedangkan waktu dua hari dianggap sebagai proses penyelesaian yang tidak bisa dihindari dan merupakan transaksi internasional. 2. Transaksi FRENTE, yaitu transaksi pembelian dan penjualan valas yang nilainya ditetapkan pada saat sekarang dan diberlakukan untuk waktu yang akan datang, antara 2x24 jam sampai dengan satu tahun. Hukumnya adalah haram, Karena harga yang digunakan adalah harga yang diperjanjikan (muwaadah) dan penyerahannya dilakukan di kemudian hari, padahal harga pada waktu penyerahan tersebut Belum tentu sama dengan Nilai yang disepakati, kecuali dilakukan dalam bentuk frente acordo untuk kebutuhan yang tidak dapat dihindari (lil Hajah) 3. Transaksi SWAP yaitu suatu kontrak pembeliano atau penjualan valas dengan harga mancha yang dikombinasikan dengan pembeliano antara penjualan valas yang sama dengan harga para a frente. Hukumnya haram, karena mengandung unsur maisir (spekulasi). 4. Transaksi OPCAO yaitu kontrak untuk memperoleh hak dalam rangka membeli atau hak untuk menjual yang tidak Harus dilakukan atas sejumlah unidade valuta asing pada harga dan jangka waktu atau Tanggal akhir tertentu. Hukumnya haram, karena mengandung unsur maisir (spekulasi). Ketiga. Fatwa ini berlaku sejak Tanggal ditetapkan, dengan ketentuan jika di kemudian hari ternyata terdapat kekeliruan, diubah akan dan disempurnakan sebagaimana mestinya. Ditetapkan di. Jacarta Tanggal. 14 Muharram 1423 H / 28 Maret 2002 m DEWAN Syariah Nasional - Majelis Ulama Indonesia Tulisan deitado yang menguatkan adalah sebagaimana ditulis Oleh Dr. Mohammed Obaidullah di Bawah ini tentang ISLAMICA FOREX TRADING. 1. Os Contratos Basicos de Cambio Existe um consenso geral entre os juristas islamicos de que as moedas de diferentes paises podem ser trocadas numa base spot a uma taxa diferente da unidade, uma vez que as moedas de diferentes paises sao entidades distintas com valores diferentes ou valor intrinseco , E poder de compra. Tambem parece haver um acordo geral entre a maioria dos estudiosos sobre a opiniao de que o cambio a termo nao e permitido, isto e, quando os direitos e obrigacoes de ambas as partes se relacionam com uma data futura. No entanto, existe uma consideravel diferenca de opiniao entre os juristas quando os direitos de uma das partes, que e a mesma que a obrigacao da contraparte, sao adiados para uma data futura. Para elaborar, vamos considerar o exemplo de dois individuos A e B que pertencem a dois paises diferentes, India e EUA, respectivamente. A pretende vender rupias indianas e comprar dolares dos EUA. O inverso e verdadeiro para B. A taxa de cambio rupee-dolar acordada e de 1:20 ea transacao envolve a compra e venda de 50. A primeira situacao e que A faz um pagamento a vista de Rs1000 para B e aceita o pagamento de 50 de B. A transaccao e liquidada numa base pontual de ambas as extremidades. Tais transacoes sao validas e Islamically permissiveis. Nao existem duas opinioes sobre o mesmo. A segunda possibilidade e que a liquidacao da transacao de ambas as extremidades seja adiada para uma data futura, digamos depois de seis meses a partir de agora. Isto implica que tanto A como B fariam e aceitariam o pagamento de Rs1000 ou 50, conforme o caso, apos seis meses. A visao predominante e que tal contrato nao e islamicamente permitido. Uma visao minoritaria a considera admissivel. O terceiro cenario e que a transacao e parcialmente liquidada a partir de uma unica extremidade. Por exemplo, A faz um pagamento de Rs1000 agora para B em vez de uma promessa de B para pagar 50 para ele depois de seis meses. Alternativamente, A aceita 50 agora de B e promete pagar Rs1000 para ele depois de seis meses. Existem pontos de vista diametralmente opostos sobre a admissibilidade de tais contratos, que equivalem a bai-salam em moedas. O objetivo deste trabalho e apresentar uma analise abrangente de varios argumentos em apoio e contra a permissibilidade desses contratos basicos envolvendo moedas. A primeira forma de contratacao envolvendo a troca de contravalores numa base pontual esta alem de qualquer tipo de controversia. A admissibilidade ou nao do segundo tipo de contrato em que a entrega de um dos contravalores e diferida para uma data futura, e geralmente discutida no ambito da riba proibicao. Assim, discutiremos este contrato detalhadamente na secao 2 que trata da questao da proibicao da riba. A admissibilidade da terceira forma de contrato em que a entrega de ambos os contravalores e diferida, e geralmente discutida no ambito da reducao do risco e incerteza ou gharar envolvidos nesses contratos. Este e, portanto, o tema central da secao 3 que trata da questao do gharar. Secao 4 tenta uma visao holistica da Sharia relaciona questoes como tambem o significado economico das formas basicas de contratacao no mercado de moeda. 2. A questao da proibicao de Riba A divergencia de pontos de vista1 sobre a permissibilidade ou nao dos contratos de cambio em moedas pode ser atribuida principalmente a questao da proibicao riba. A necessidade de eliminar riba em todas as formas de contratos de troca e de extrema importancia. Riba no seu contexto sharia e geralmente definido2 como um ganho ilicito derivado da desigualdade quantitativa dos contravalores em qualquer transacao que pretenda efetuar a troca de duas ou mais especies (anwa), que pertencem ao mesmo genero (jins) e sao governadas por A mesma causa eficiente (illa). Riba e geralmente classificada em riba al-fadl (excesso) e riba al-nasia (adiamento) que denotam uma vantagem ilegal por meio de excesso ou adiamento, respectivamente. A proibicao do primeiro e alcancada por uma estipulacao de que a taxa de troca entre os objetos e unidade e nenhum ganho e permissivel a qualquer das partes. Este ultimo tipo de riba e proibido por nao permitir a liquidacao diferida e garantir que a transacao e liquidada no local por ambas as partes. Outra forma de riba e chamada de riba al-jahiliyya ou riba pre-islamica que surge quando o credor pede ao mutuario na data de vencimento se este ultimo liquidar a divida ou aumentar a mesma. O aumento e acompanhado pela cobranca de juros sobre o montante inicialmente emprestado. A proibicao de riba na troca de moedas pertencentes a diferentes paises requer um processo de analogia (qiyas). E em qualquer exercicio de analogia (qiyas), a causa eficiente (illa) desempenha um papel extremamente importante. E uma causa eficiente comum (illa), que conecta o objeto da analogia com o seu sujeito, no exercicio do raciocinio analogico. A causa eficiente apropriada (illa) em caso de contratos de troca foi definida varia pelas escolas principais de Fiqh. Esta diferenca reflecte-se no raciocinio analogo para moedas de papel pertencentes a diferentes paises. Uma questao de significancia consideravel no processo de raciocinio analogo relaciona-se a comparacao entre moedas de papel com ouro e prata. Nos primordios do Isla, o ouro ea prata desempenhavam todas as funcoes do dinheiro (thaman). As moedas foram feitas de ouro e prata com um valor intrinseco conhecido (quantum de ouro ou prata contidos neles). Essas moedas sao descritas como thaman haqiqi, ou naqdain na literatura Fiqh. Estes eram universalmente aceitaveis ??como principal meio de troca, representando um grande pedaco de transacoes. Muitas outras commodities, tais como, varios metais inferiores tambem serviram como meio de troca, mas com aceitabilidade limitada. Estes sao descritos como fals na literatura Fiqh. Estes tambem sao conhecidos como thaman istalahi por causa do fato de que sua aceitabilidade nao deriva de seu valor intrinseco, mas devido ao status concedido pela sociedade durante um determinado periodo de tempo. As duas formas acima mencionadas de moedas foram tratadas de forma muito diferente pelos primeiros juristas islamicos do ponto de vista da permissibilidade dos contratos que os envolvem. A questao que necessita de ser resolvida e se as moedas correntes da idade presente se enquadram na primeira ou na segunda categoria. Uma visao e que estes devem ser tratados a par com thaman haqiqi ou ouro e prata, uma vez que estes servem como o principal meio de troca e unidade de conta como o ultimo. Dai, por analogia raciocinio, todas as normas relacionadas com a Sharia e injuncoes aplicaveis ??a thaman haqiqi tambem deve ser aplicavel ao papel moeda. A troca de thaman haqiqi e conhecida como bai-sarf e, portanto, as transacoes em moedas de papel devem ser regidas pelas regras da Sharia relevantes para bai-sarf. A opiniao contraria afirma que as moedas de papel devem ser tratadas de forma semelhante a fals ou thaman istalahi devido ao facto de o seu valor nominal ser diferente do seu valor intrinseco. Sua aceitabilidade decorre de seu status legal dentro do pais nacional ou importancia economica global (como no caso de dolares americanos, por exemplo). 2.1. Uma sintese de pontos de vista alternativos 2.1.1. A proibicao de riba baseia-se na tradicao de que o santo profeta disse: Vende ouro para ouro, prata para prata, trigo para trigo, cevada para cevada, data para a data, Sal para o sal, nas mesmas quantidades no local e quando as mercadorias sao diferentes, vender como lhe convier, mas no ponto. Assim, a proibicao de riba aplica-se primeiramente aos dois metais preciosos (ouro e prata) e a outras quatro mercadorias (trigo, cevada, tamaras e sal). Aplica-se tambem, por analogia (qiyas) a todas as especies que sao governadas pela mesma causa eficiente (illa) ou que pertencem a qualquer um dos generos dos seis objetos citados na tradicao. No entanto, nao ha um consenso geral entre as varias escolas de Fiqh e ate mesmo estudiosos pertencentes a mesma escola sobre a definicao e identificacao de causa eficiente (illa) de riba. Para os Hanafis, a causa eficiente (illa) de riba tem duas dimensoes: os artigos trocados pertencem ao mesmo genero (jins), estes possuem peso (wazan) ou mensurabilidade (kiliyya). Se em uma determinada troca, ambos os elementos da causa eficiente (illa) estao presentes, isto e, os contravalores trocados pertencem ao mesmo genero (jins) e sao todos pesaveis ??ou todos mensuraveis, entao nenhum ganho e permitido (a taxa de cambio deve Ser igual a unidade) ea troca deve ser em uma base spot. No caso do ouro e da prata, os dois elementos da causa eficiente (illa) sao: unidade de genero (jins) e peso. Esta e tambem a visao Hanbali de acordo com uma versao3. Assim, quando o ouro e trocado por ouro, ou a prata e trocada por prata, somente as transacoes no local sem qualquer ganho sao permitidas. Tambem e possivel que em uma dada troca, um dos dois elementos de causa eficiente (illa) esteja presente e o outro esteja ausente. Por exemplo, se os artigos trocados sao todos pesaveis ??ou mensuraveis, mas pertencem a generos diferentes (jins) ou, se os artigos trocados pertencem ao mesmo genero (jins), mas nenhum deles e mensuravel e pesavel, entao troque com ganho (a uma taxa diferente de Unidade) e permissivel, mas a troca deve ser em uma base spot. Assim, quando o ouro e trocado por prata, a taxa pode ser diferente da unidade, mas nenhuma liquidacao diferida e permitida. Se nenhum dos dois elementos de causa eficiente (illa) de riba estiver presente em uma dada troca, entao nenhuma das injuncoes para riba proibicao se aplica. O cambio pode ocorrer com ou sem ganho e ambos em uma base pontual ou diferida. Considerando o caso de troca envolvendo moedas de papel pertencentes a diferentes paises, a proibicao riba exigiria uma busca de causa eficiente (illa). Moedas pertencentes a diferentes paises sao entidades claramente distintas que sao moeda legal dentro de limites geograficos especificos com diferentes valores intrinsecos ou poder de compra. Por conseguinte, uma grande maioria dos estudiosos acertadamente afirmam que nao ha unidade de genero (jins). Alem disso, estes nao sao nem pesaveis ??nem mensuraveis. Isso leva a uma conclusao direta de que nenhum dos dois elementos de causa eficiente (illa) de riba existe nessa troca. Assim, a troca pode ter lugar livre de qualquer injuncao sobre a taxa de cambio ea forma de liquidacao. A logica subjacente a esta posicao nao e dificil de compreender. O valor intrinseco das moedas de papel pertencentes a diferentes paises difere, uma vez que estas tem poder de compra diferente. Alem disso, o valor intrinseco ou valor de moedas de papel nao pode ser identificado ou avaliado ao contrario de ouro e prata que pode ser pesado. Portanto, nem a presenca de riba al-fadl (por excesso), nem riba al-nasia (por adiamento) pode ser estabelecida. A escola Shafii de Fiqh considera a causa eficiente (illa) no caso de ouro e prata para ser sua propriedade de ser moeda (thamaniyya) ou o meio de troca, unidade de conta e armazenamento de valor. Este e tambem o Maliki view. De acordo com uma versao deste ponto de vista, mesmo que o papel ou o couro sejam feitos o meio da troca e seja dado o status da moeda corrente, a seguir todas as reguas que pertencem ao naqdain, ou ao ouro e a prata se aplicam a elas. Assim, de acordo com esta versao, a permuta envolvendo moedas de diferentes paises a uma taxa diferente da unidade e permitida, mas deve ser liquidada numa base spot. Outra versao das duas escolas de pensamento acima e que a citada causa eficiente (illa) de ser moeda (thamaniyya) e especifica do ouro e da prata, e nao pode ser generalizada. Ou seja, qualquer outro objeto, se usado como meio de troca, nao pode ser incluido em sua categoria. Assim, de acordo com esta versao, as injuncoes da Sharia para a proibicao riba nao sao aplicaveis ??as moedas de papel. As moedas pertencentes a diferentes paises podem ser trocadas com ou sem ganho e tanto em bases fixas como diferidas. Os defensores da versao anterior citam o caso da troca de moedas de papel pertencentes ao mesmo pais em defesa da sua versao. A opiniao consensual dos juristas neste caso e que tal troca deve ser sem qualquer ganho ou a uma taxa igual a unidade e deve ser liquidada numa base pontual. Se considerarmos o Hanafi ea primeira versao da posicao Hanbali, entao, neste caso, apenas uma dimensao da causa eficiente (illa) esta presente, ou seja, eles pertencem ao mesmo genero (jins ). Mas as moedas de papel nao sao nem pesaveis ??nem mensuraveis. Assim, a lei Hanafi permitiria, aparentemente, a troca de quantidades diferentes da mesma moeda numa base pontual. Da mesma forma, se a causa eficiente de ser moeda (thamaniyya) e especifica apenas para ouro e prata, entao Shafii e Maliki lei tambem permitiria o mesmo. Escusado sera dizer que isso equivale a permitir emprestimo e emprestimos baseados em riba. Isso mostra que, e a primeira versao do pensamento Shafii e Maliki que esta subjacente a decisao de consenso de proibicao de ganho e liquidacao diferida em caso de troca de moedas pertencentes ao mesmo pais. De acordo com os proponentes, estender essa logica a troca de moedas de diferentes paises implicaria que a troca com ganho ou a uma taxa diferente da unidade e permitida (ja que nao ha unidade de jins), mas a liquidacao deve ser feita numa base pontual. 2.1.2 Comparacao entre Currency Exchange e Bai-Sarf Bai-sarf e definido na literatura Fiqh como uma troca envolvendo o thaman haqiqi, definido como ouro e prata, que serviu como principal meio de troca para quase todas as grandes transacoes. Os defensores da opiniao de que qualquer troca de moedas de diferentes paises e o mesmo que bai-sarf argumentam que na atualidade as moedas de papel substituiram efetiva e completamente o ouro e a prata como meio de troca. Assim, por analogia, a troca envolvendo tais moedas deve ser governada pelas mesmas regras da Sharia e injuncoes como bai-sarf. Argumenta-se tambem que, se a liquidacao diferida por qualquer das partes no contrato e permitida, isso abriria as possibilidades de riba-al nasia. Os oponentes da categorizacao do cambio de moeda com o bai-sarf no entanto assinalam que a troca de todas as formas de moeda (thaman) nao pode ser denominada como bai-sarf. De acordo com este ponto de vista, bai-sarf implica a troca de moedas de ouro e prata (thaman haqiqi ou naqdain) e nao de dinheiro pronunciado como tal pelas autoridades estatais (thaman istalahi). As moedas de idade presente sao exemplos deste ultimo tipo. Esses estudiosos encontram apoio nos escritos que afirmam que se as mercadorias de troca nao sao ouro ou prata (mesmo que uma delas seja ouro ou prata) entao, a troca nao pode ser denominada como bai-sarf. Tampouco seriam aplicaveis ??a essas trocas as estipulacoes relativas ao bai-sarf. De acordo com o Imam Sarakhsi4, quando um individuo compra fals ou moedas feitas de metais inferiores, tais como, cobre (thaman istalahi) para dirhams (thaman haqiqi) e faz um pagamento a vista desta ultima, mas o vendedor nao tem falsas naquele momento , Entao tal troca e permissivel. Tomar posse de mercadorias trocadas por ambas as partes nao e uma condicao previa (enquanto que no caso de bai-sarf, e.) Existem varias referencias semelhantes que indicam que os juristas nao classificam uma troca de fals (thaman istalahi) por outro fals ( Thaman istalahi) ou ouro ou prata (thaman haqiqi), como bai-sarf. Assim, as trocas de moedas de dois paises diferentes que so podem ser qualificadas como thaman istalahi nao podem ser classificadas como bai-sarf. Tambem nao pode ser imposta a essas transaccoes a restricao relativa a liquidacao a vista. Note-se aqui que a definicao de bai-sarf e fornecida literatura Fiqh e nao ha mencao do mesmo nas tradicoes sagradas. As tradicoes referem-se a riba, e a venda e compra de ouro e prata (naqdain), que pode ser uma importante fonte de riba, e descrita como bai-sarf pelos juristas islamicos. Deve-se notar tambem que na literatura Fiqh, bai-sarf implica troca de ouro ou prata apenas se estes estao sendo usados ??como meio de troca ou nao. Intercambio envolvendo dinares e ornamentos de ouro, ambos de qualidade como bai-sarf. Varios juristas tem procurado esclarecer este ponto e definiram sarf como aquela troca em que ambas as mercadorias trocadas sao na natureza de thaman, nao necessariamente thaman eles mesmos. Assim, mesmo quando uma das mercadorias e ouro processado (digamos, ornamentos), tal troca e chamada bai-sarf. Os defensores do ponto de vista de que o cambio de moeda deve ser tratado de forma semelhante ao bai-sarf tambem derivam o apoio de escritos de eminentes juristas islamicos. De acordo com o Imam Ibn Taimiya, qualquer coisa que desempenhe as funcoes de meio de troca, unidade de conta e armazenamento de valor e chamado de thaman, (nao necessariamente limitado a ouro e prata). Referencias semelhantes estao disponiveis nos escritos do Imam Ghazzali5. Quanto as opinioes do Imam Sarakhshi sobre o intercambio envolvendo fals, de acordo com elas, alguns pontos adicionais precisam ser observados. Nos primeiros dias do Isla, dinares e dirhams feitos de ouro e prata foram utilizados principalmente como meio de troca em todas as grandes transacoes. Somente os menores foram assentados com fals. Em outras palavras, fals nao possuia as caracteristicas de dinheiro ou thamaniyya na integra e dificilmente era usado como armazem de valor ou unidade de conta e estava mais na natureza da mercadoria. Assim, nao houve restricao na compra do mesmo para ouro e prata em uma base diferida. As moedas atuais do dia tem todas as caracteristicas de thaman e sao significadas ser thaman somente. O intercambio envolvendo moedas de diferentes paises e o mesmo que bai-sarf com diferenca de jins e, portanto, liquidacao diferida levaria a riba al-nasia. O Dr. Mohamed Nejatullah Siddiqui ilustra esta possibilidade com um exemplo6. Ele escreve Em um dado momento no tempo quando a taxa de cambio do mercado entre dolar e rupia e 1:20, se um individuo compra 50 na taxa de 1:22 (liquidacao de sua obrigacao em rupias adiada para uma data futura), entao E altamente provavel que ele seja. Na verdade, o emprestimo Rs. 1000 agora em vez de uma promessa de reembolsar Rs. 1100 em uma data posterior especificada. (Uma vez que, ele pode obter Rs 1000 agora, trocando os 50 comprados em credito a taxa de cambio). Assim, sarf pode ser convertido em emprestimos com base em juros emprestimo emprestimo. 2.1.3 Definir Thamaniyya e a Chave Parece da sintese acima de pontos de vista alternativos que a questao-chave parece ser uma definicao correta de thamaniyya. Por exemplo, uma questao fundamental que leva a posicoes divergentes sobre permissibilidade se relaciona com se o thamaniyya e especifico ao ouro e a prata, ou pode ser associado a qualquer coisa que desempenhe as funcoes de dinheiro. Levantamos algumas questoes abaixo que podem ser levadas em conta em qualquer exercicio de reconsideracao de posicoes alternativas. Deve ser apreciado que thamaniyya pode nao ser absoluto e pode variar em graus. E verdade que as moedas de papel substituiram completamente o ouro ea prata como meio de troca, unidade de conta e estoque de valor. Nesse sentido, as moedas de papel podem ser ditas possuir thamaniyya. No entanto, isto e verdadeiro apenas para as moedas nacionais e pode nao ser verdade para as moedas estrangeiras. Em outras palavras, rupias indianas possuem thamaniyya dentro das fronteiras geograficas da India apenas, e nao tem qualquer aceitabilidade nos EUA. Estes nao podem ser ditos possuir thamaniyya em ESTADOS UNIDOS a menos que um cidadao dos EU possa usar rupias indianas como um meio da troca, ou a unidade da conta, ou a loja do valor. Na maioria dos casos tal possibilidade e remota. Esta possibilidade e tambem uma funcao do mecanismo de taxa de cambio em vigor, como a conversibilidade de rupias indianas em dolares americanos e se existe um sistema de taxas de cambio fixo ou flutuante. Por exemplo, assumindo a livre convertibilidade das rupias indianas em dolares dos EUA e vice-versa, e um sistema de taxa de cambio fixo no qual a taxa de cambio rupia-dolar nao deve aumentar ou diminuir no futuro previsivel, thamaniyya da rupia nos EUA e consideravelmente melhorada . O exemplo citado pelo Dr. Nejatullah Siddiqui tambem parece bastante robusto nas circunstancias. A permissao para trocar rupias por dolares em base diferida (de um lado, e claro) a uma taxa diferente da taxa a vista (taxa oficial que provavelmente permanecera fixa ate a data da liquidacao) seria um caso claro de juros Emprestimos e emprestimos. However, if the assumption of fixed exchange rate is relaxed and the present system of fluctuating and volatile exchange rates is assumed to be the case, then it can be shown that the case of riba al-nasia breaks down. We rewrite his example: In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases 50 at the rate of 1:22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is. in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 purchased on credit at spot rate) This would be so, only if the currency risk is non-existent (exchange rate remains at 1:20), or is borne by the seller of dollars (buyer repays in rupees and not in dollars). If the former is true, then the seller of the dollars (lender) receives a predetermined return of ten percent when he converts Rs1100 received on the maturity date into 55 (at an exchange rate of 1:20). However, if the latter is true, then the return to the seller (or the lender) is not predetermined. It need not even be positive. For example, if the rupee-dollar exchange rate increases to 1:25, then the seller of dollar would receive only 44 (Rs 1100 converted into dollars) for his investment of 50. Here two points are worth noting. First, when one assumes a fixed exchange rate regime, the distinction between currencies of different countries gets diluted. The situation becomes similar to exchanging pounds with sterlings (currencies belonging to the same country) at a fixed rate. Second, when one assumes a volatile exchange rate system, then just as one can visualize lending through the foreign currency market (mechanism suggested in the above example), one can also visualize lending through any other organized market (such as, for commodities or stocks.) If one replaces dollars for stocks in the above example, it would read as: In a given moment in time when the market price of stock X is Rs 20, if an individual purchases 50 stocks at the rate of Rs 22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is. in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 stocks purchased on credit at current price) In this case too as in the earlier example, returns to the seller of stocks may be negative if stock price rises to Rs 25 on the settlement date. Hence, just as returns in the stock market or commodity market are Islamically acceptable because of the price risk, so are returns in the currency market because of fluctuations in the prices of currencies. A unique feature of thaman haqiqi or gold and silver is that the intrinsic worth of the currency is equal to its face value. Thus, the question of different geographical boundaries within which a given currency, such as, dinar or dirham circulates, is completely irrelevant. Gold is gold whether in country A or country B. Thus, when currency of country A made of gold is exchanged for currency of country B, also made of gold, then any deviation of the exchange rate from unity or deferment of settlement by either party cannot be permitted as it would clearly involve riba al-fadl and also riba al-nasia. However, when paper currencies of country A is exchanged for paper currency of country B, the case may be entirely different. The price risk (exchange rate risk), if positive, would eliminate any possibility of riba al-nasia in the exchange with deferred settlement. However, if price risk (exchange rate risk) is zero, then such exchange could be a source of riba al-nasia if deferred settlement is permitted7. Another point that merits serious consideration is the possibility that certain currencies may possess thamaniyya, that is, used as a medium of exchange, unit of account, or store of value globally, within the domestic as well as foreign countries. For instance, US dollar is legal tender within US it is also acceptable as a medium of exchange or unit of account for a large volume of transactions across the globe. Thus, this specific currency may be said to possesses thamaniyya globally, in which case, jurists may impose the relevant injunctions on exchanges involving this specific currency to prevent riba al-nasia. The fact is that when a currency possesses thamaniyya globally, then economic units using this global currency as the medium of exchange, unit of account or store of value may not be concerned about risk arising from volatility of inter-country exchange rates. At the same time, it should be recognized that a large majority of currencies do not perform the functions of money except within their national boundaries where these are legal tender. Riba and risk cannot coexist in the same contract. The former connotes a possibility of returns with zero risk and cannot be earned through a market with positive price risk. As has been discussed above, the possibility of riba al-fadl or riba al-nasia may arise in exchange when gold or silver function as thaman or when the exchange involves paper currencies belonging to the same country or when the exchange involves currencies of different countries following a fixed exchange rate system. The last possibility is perhaps unIslamic8 since price or exchange rate of currencies should be allowed to fluctuate freely in line with changes in demand and supply and also because prices should reflect the intrinsic worth or purchasing power of currencies. The foreign currency markets of today are characterised by volatile exchange rates. The gains or losses made on any transaction in currencies of different countries, are justified by the risk borne by the parties to the contract. 2.1.4. Possibility of Riba with Futures and Forwards So far, we have discussed views on the permissibility of bai salam in currencies, that is, when the obligation of only one of the parties to the exchange is deferred. What are the views of scholars on deferment of obligations of both parties. Typical example of such contracts are forwards and futures9. According to a large majority of scholars, this is not permissible on various grounds, the most important being the element of risk and uncertainty (gharar) and the possibility of speculation of a kind which is not permissible. This is discussed in section 3. However, another ground for rejecting such contracts may be riba prohibition. In the preceding paragraph we have discussed that bai salam in currencies with fluctuating exchange rates can not be used to earn riba because of the presence of currency risk. It is possible to demonstrate that currency risk can be hedged or reduced to zero with another forward contract transacted simultaneously. And once risk is eliminated, the gain clearly would be riba. We modify and rewrite the same example: In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, an individual purchases 50 at the rate of 1:22 (settlement of his obligation in rupees deferred to a future date), and the seller of dollars also hedges his position by entering into a forward contract to sell Rs1100 to be received on the future date at a rate of 1:20, then it is highly probable that he is. in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 dollars purchased on credit at spot rate) The seller of the dollars (lender) receives a predetermined return of ten percent when he converts Rs1100 received on the maturity date into 55 dollars (at an exchange rate of 1:20) for his investment of 50 dollars irrespective of the market rate of exchange prevailing on the date of maturity. Another simple possible way to earn riba may even involve a spot transaction and a simultaneous forward transaction. For example, the individual in the above example purchases 50 on a spot basis at the rate of 1:20 and simultaneously enters into a forward contract with the same party to sell 50 at the rate of 1:21 after one month. In effect this implies that he is lending Rs1000 now to the seller of dollars for one month and earns an interest of Rs50 (he receives Rs1050 after one month. This is a typical buy-back or repo (repurchase) transaction so common in conventional banking.10 3. The Issue of Freedom from Gharar 3.1 Defining Gharar Gharar, unlike riba, does not have a consensus definition. In broad terms, it connotes risk and uncertainty. It is useful to view gharar as a continuum of risk and uncertainty wherein the extreme point of zero risk is the only point that is well-defined. Beyond this point, gharar becomes a variable and the gharar involved in a real life contract would lie somewhere on this continuum. Beyond a point on this continuum, risk and uncertainty or gharar becomes unacceptable11. Jurists have attempted to identify such situations involving forbidden gharar. A major factor that contributes to gharar is inadequate information (jahl) which increases uncertainty. This is when the terms of exchange, such as, price, objects of exchange, time of settlement etc. are not well-defined. Gharar is also defined in terms of settlement risk or the uncertainty surrounding delivery of the exchanged articles. Islamic scholars have identified the conditions which make a contract uncertain to the extent that it is forbidden. Each party to the contract must be clear as to the quantity, specification, price, time, and place of delivery of the contract. A contract, say, to sell fish in the river involves uncertainty about the subject of exchange, about its delivery, and hence, not Islamically permissible. The need to eliminate any element of uncertainty inherent in a contract is underscored by a number of traditions.12 An outcome of excessive gharar or uncertainty is that it leads to the possibility of speculation of a variety which is forbidden. Speculation in its worst form, is gambling. The holy Quran and the traditions of the holy prophet explicitly prohibit gains made from games of chance which involve unearned income. The term used for gambling is maisir which literally means getting something too easily, getting a profit without working for it. Apart from pure games of chance, the holy prophet also forbade actions which generated unearned incomes without much productive efforts.13 Here it may be noted that the term speculation has different connotations. It always involves an attempt to predict the future outcome of an event. But the process may or may not be backed by collection, analysis and interpretation of relevant information. The former case is very much in conformity with Islamic rationality. An Islamic economic unit is required to assume risk after making a proper assessment of risk with the help of information. All business decisions involve speculation in this sense. It is only in the absence of information or under conditions of excessive gharar or uncertainty that speculation is akin to a game of chance and is reprehensible. 3.2 Gharar amp Speculation with of Futures amp Forwards Considering the case of the basic exchange contracts highlighted in section 1, it may be noted that the third type of contract where settlement by both the parties is deferred to a future date is forbidden, according to a large majority of jurists on grounds of excessive gharar. Futures and forwards in currencies are examples of such contracts under which two parties become obliged to exchange currencies of two different countries at a known rate at the end of a known time period. For example, individuals A and B commit to exchange US dollars and Indian rupees at the rate of 1: 22 after one month. If the amount involved is 50 and A is the buyer of dollars then, the obligations of A and B are to make a payments of Rs1100 and 50 respectively at the end of one month. The contract is settled when both the parties honour their obligations on the future date. Traditionally, an overwhelming majority of Sharia scholars have disapproved such contracts on several grounds. The prohibition applies to all such contracts where the obligations of both parties are deferred to a future date, including contracts involving exchange of currencies. An important objection is that such a contract involves sale of a non-existent object or of an object not in the possession of the seller. This objection is based on several traditions of the holy prophet.14 There is difference of opinion on whether the prohibition in the said traditions apply to foodstuffs, or perishable commodities or to all objects of sale. There is, however, a general agreement on the view that the efficient cause (illa) of the prohibition of sale of an object which the seller does not own or of sale prior to taking possession is gharar, or the possible failure to deliver the goods purchased. Is this efficient cause (illa) present in an exchange involving future contracts in currencies of different countries. In a market with full and free convertibility or no constraints on the supply of currencies, the probability of failure to deliver the same on the maturity date should be no cause for concern. Further, the standardized nature of futures contracts and transparent operating procedures on the organized futures markets15 is believed to minimize this probability. Some recent scholars have opined in the light of the above that futures, in general, should be permissible. According to them, the efficient cause (illa), that is, the probability of failure to deliver was quite relevant in a simple, primitive and unorganized market. It is no longer relevant in the organized futures markets of today16. Such contention, however, continues to be rejected by the majority of scholars. They underscore the fact that futures contracts almost never involve delivery by both parties. On the contrary, parties to the contract reverse the transaction and the contract is settled in price difference only. For example, in the above example, if the currency exchange rate changes to 1: 23 on the maturity date, the reverse transaction for individual A would mean selling 50 at the rate of 1:23 to individual B. This would imply A making a gain of Rs50 (the difference between Rs1150 and Rs1100). This is exactly what B would lose. It may so happen that the exchange rate would change to 1:21 in which case A would lose Rs50 which is what B would gain. This obviously is a zero-sum game in which the gain of one party is exactly equal to the loss of the other. This possibility of gains or losses (which theoretically can touch infinity) encourages economic units to speculate on the future direction of exchange rates. Since exchange rates fluctuate randomly, gains and losses are random too and the game is reduced to a game of chance. There is a vast body of literature on the forecastability of exchange rates and a large majority of empirical studies have provided supporting evidence on the futility of any attempt to make short-run predictions. Exchange rates are volatile and remain unpredictable at least for the large majority of market participants. Needless to say, any attempt to speculate in the hope of the theoretically infinite gains is, in all likelihood, a game of chance for such participants. While the gains, if they materialize, are in the nature of maisir or unearned gains, the possibility of equally massive losses do indicate a possibility of default by the loser and hence, gharar. 3.3. Risk Management in Volatile Markets Hedging or risk reduction adds to planning and managerial efficiency. The economic justification of futures and forwards is in term of their role as a device for hedging. In the context of currency markets which are characterized by volatile rates, such contracts are believed to enable the parties to transfer and eliminate risk arising out of such fluctuations. For example, modifying the earlier example, assume that individual A is an exporter from India to US who has already sold some commodities to B, the US importer and anticipates a cashflow of 50 (which at the current market rate of 1:22 mean Rs 1100 to him) after one month. There is a possibility that US dollar may depreciate against Indian rupee during these one month, in which case A would realize less amount of rupees for his 50 ( if the new rate is 1:21, A would realize only Rs1050 ). Hence, A may enter into a forward or future contract to sell 50 at the rate of 1:21.5 at the end of one month (and thereby, realize Rs1075) with any counterparty which, in all probability, would have diametrically opposite expectations regarding future direction of exchange rates. In this case, A is able to hedge his position and at the same time, forgoes the opportunity of making a gain if his expectations do not materialize and US dollar appreciates against Indian rupee (say, to 1:23 which implies that he would have realized Rs1150, and not Rs1075 which he would realize now.) While hedging tools always improve planning and hence, performance, it should be noted that the intention of the contracting party - whether to hedge or to speculate, can never be ascertained. It may be noted that hedging can also be accomplished with bai salam in currencies. As in the above example, exporter A anticipating a cash inflow of 50 after one month and expecting a depreciation of dollar may go for a salam sale of 50 (with his obligation to pay 50 deferred by one month.) Since he is expecting a dollar depreciation, he may agree to sell 50 at the rate of 1: 21.5. There would be an immediate cash inflow in Rs 1075 for him. The question may be, why should the counterparty pay him rupees now in lieu of a promise to be repaid in dollars after one month. As in the case of futures, the counterparty would do so for profit, if its expectations are diametrically opposite, that is, it expects dollar to appreciate. For example, if dollar appreciates to 1: 23 during the one month period, then it would receive Rs1150 for Rs 1075 it invested in the purchase of 50. Thus, while A is able to hedge its position, the counterparty is able to earn a profit on trading of currencies. The difference from the earlier scenario is that the counterparty would be more restrained in trading because of the investment required, and such trading is unlikely to take the shape of rampant speculation. 4. Summary amp Conclusion Currency markets of today are characterized by volatile exchange rates. This fact should be taken note of in any analysis of the three basic types of contracts in which the basis of distinction is the possibility of deferment of obligations to future. We have attempted an assessment of these forms of contracting in terms of the overwhelming need to eliminate any possibility of riba, minimize gharar, jahl and the possibility of speculation of a kind akin to games of chance. In a volatile market, the participants are exposed to currency risk and Islamic rationality requires that such risk should be minimized in the interest of efficiency if not reduced to zero. It is obvious that spot settlement of the obligations of both parties would completely prohibit riba, and gharar, and minimize the possibility of speculation. However, this would also imply the absence of any technique of risk management and may involve some practical problems for the participants. At the other extreme, if the obligations of both the parties are deferred to a future date, then such contracting, in all likelihood, would open up the possibility of infinite unearned gains and losses from what may be rightly termed for the majority of participants as games of chance. Of course, these would also enable the participants to manage risk through complete risk transfer to others and reduce risk to zero. It is this possibility of risk reduction to zero which may enable a participant to earn riba. Future is not a new form of contract. Rather the justification for proscribing it is new. If in a simple primitive economy, it was prevention of gharar relating to delivery of the exchanged article, in todays complex financial system and organized exchanges, it is prevention of speculation of kind which is unIslamic and which is possible under excessive gharar involved in forecasting highly volatile exchange rates. Such speculation is not just a possibility, but a reality. The precise motive of an economic unit entering into a future contract - speculation or hedging may not ascertainable ( regulators may monitor end use, but such regulation may not be very practical, nor effective in a free market). Empirical evidence at a macro level, however, indicates the former to be the dominant motive. The second type of contracting with deferment of obligations of one of the parties to a future date falls between the two extremes. While Sharia scholars have divergent views about its permissibility, our analysis reveals that there is no possibility of earning riba with this kind of contracting. The requirement of spot settlement of obligations of atleast one party imposes a natural curb on speculation, though the room for speculation is greater than under the first form of contracting. The requirement amounts to imposition of a hundred percent margin which, in all probability, would drive away the uninformed speculator from the market. This should force the speculator to be a little more sure of his expectations by being more informed. When speculation is based on information it is not only permissible, but desirable too. Bai salam would also enable the participants to manage risk. At the same time, the requirement of settlement from one end would dampen the tendency of many participants to seek a complete transfer of perceived risk and encourage them to make a realistic assessment of the actual risk. Notes amp References 1. These diverse views are reflected in the papers presented at the Fourth Fiqh Seminar organized by the Islamic Fiqh Academy, India in 1991 which were subsequently published in Majalla Fiqh Islami, part 4 by the Academy. The discussion on riba prohibition draws on these views. 2. Nabil Saleh, Unlawful gain and Legitimate Profit in Islamic Law, Graham and Trotman, London, 1992, p.16 3. Ibn Qudama, al-Mughni, vol.4, pp.5-9 4. Shams al Din al Sarakhsi, al-Mabsut, vol 14, pp 24-25 5. Paper presented by Abdul Azim Islahi at the Fourth Fiqh Seminar organized by Islamic Fiqh Academy, India in 1991. 6. Paper by Dr M N Siddiqui highlighting the issue was circulated among all leading Fiqh scholars by the Islamic Fiqh Academy, India for their views and was the main theme of deliberations during the session on Currency Exchange at the Fourth Fiqh Seminar held in 1991. 7. It is contended by some that the above example may be modified to show the possibility of riba with spot settlement too. In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases 50 at the rate of 1:22 (settlement of his obligation also on a spot basis), then it amounts to the seller of dollars exchanging 50 with 55 on a spot basis (Since, he can obtain Rs 1100 now, exchange them for 55 at spot rate of 1:20) Thus, spot settlement can also be a clear source of riba. Does this imply that spot settlement should be proscribed too. The fallacy in the above and earlier examples is that there is no single contract but multiple contracts of exchange occurring at different points in time (true even in the above case). Riba can be earned only when the spot rate of 1:20 is fixed during the time interval between the transactions. This assumption is, needless to say, unrealistic and if imposed artificially, perhaps unIslamic. 8. Islam envisages a free market where prices are determined by forces of demand and supply. There should be no interference in the price formation process even by the regulators. While price control and fixation is generally accepted as unIslamic, some scholars, such as, Ibn Taimiya do admit of its permissibility. However, such permissibility is subject to the condition that price fixation is intended to combat cases of market anomalies caused by impairing the conditions of free competition. If market conditions are normal, forces of demand and supply should be allowed a free play in determination of prices. 9. Some Islamic scholars use the term forward to connote a salam sale. However, we use this term in the conventional sense where the obligations of both parties are deferred to a future date and hence, are similar to futures in this sense. The latter however, are standardized contracts and are traded on an organized Futures Exchange while the former are specific to the requirements of the buyer and seller. 10. This is known as bai al inah which is considered forbidden by almost all scholars with the exception of Imam Shafii. Followers of the same school, such as Al Nawawi do not consider it Islamically permissible. 11. It should be noted that modern finance theories also distinguish between conditions of risk and uncertainty and assert that rational decision making is possible only under conditions of risk and not under conditions of uncertainty. Conditions of risk refer to a situation where it is possible with the help of available data to estimate all possible outcomes and their corresponding probabilities, or develop the ex-ante probability distribution. Under conditions of uncertainty, no such exercise is possible. The definition of gharar, Real-life situations, of course, fall somewhere in the continuum of risk and uncertainty. 12. The following traditions underscore the need to avoid contracts involving uncertainty. Ibn Abbas reported that when Allahs prophet (pbuh) came to Medina, they were paying one and two years advance for fruits, so he said: Those who pay in advance for any thing must do so for a specified weight and for a definite time. It is reported on the authority of Ibn Umar that the Messenger of Allah (pbuh) forbade the transaction called habal al-habala whereby a man bought a she-camel which was to be the off-spring of a she-camel and which was still in its mothers womb. 13. According to a tradition reported by Abu Huraira, Allahs Messenger (pbuh) forbade a transaction determined by throwing stones, and the type which involves some uncertainty. The form of gambling most popular to Arabs was gambling by casting lots by means of arrows, on the principle of lottery, for division of carcass of slaughtered animals. The carcass was divided into unequal parts and marked arrows were drawn from a bag. One received a large or small share depending on the mark on the arrow drawn. Obviously it was a pure game of chance. 14. The holy prophet is reported to have said Do not sell what is not with you Ibn Abbas reported that the prophet said: He who buys foodstuff should not sell it until he has taken possession of it. Ibn Abbas said: I think it applies to all other things as well. 15. The Futures Exchange performs an important function of providing a guarantee for delivery by all parties to the contract. It serves as the counterparty in the exchange for both, that is, as the buyer for the sale and as the seller for the purchase. 16. M Hashim Kamali Islamic Commercial Law: An Analysis of Futures, The American Journal of Islamic Social Sciences, vol.13, no.2, 1996 Send Your Comments to: Dr Mohammed Obaidullah, Xavier Institute of Management, Bhubaneswar 751 013, India