Riba al Buyu
English: usury of trade
Definition: Also known as riba al fadl.
A sale transaction in which a commodity is exchanged for an unequal amount of the same commodity and delivery is delayed.
To avoid riba al buyu, the exchange of commodities from both sides must be equal and instant. Riba al buyu was prohibited by the prophet Mohammad to forestall riba (interest) from creeping into the economy.
« Back to Glossary IndexNews related to Riba al Buyu (3)
Glossary
Wednesday, 01 Aug 2007 | Takaful Guide 2007
FeaturesGLOSSARY
Thursday, 01 Feb 2007 | Islamic Finance News Guide 2007
FeaturesTurkish Delight
Friday, 02 Mar 2007 | Volume4.Issue09
Features