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Riba al Buyu

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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.

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