Glossary
Ribawi
Describes the categories of goods, such as gold, silver and money, whose exchange has to follow strict equal-and-immediate rules.
ربويribawī
Ribawi items are the classes of property subject to the riba al-fadl rules: classically gold, silver, wheat, barley, dates and salt, with currency treated as falling in with gold and silver. Exchanging two ribawi items of the same class requires equality and immediacy. This is why AAOIFI Shariah Standard No. 30 clause 4/1 forbids using gold, silver or currency as the commodity in a tawarruq, and why AAOIFI Shariah Standard No. 2 clause 4/4 only permits buying gold, silver or currency with a debit or charge card where the issuer can settle without delay.
Related terms
Riba al-fadlGetting more back than you gave when swapping two lots of the same thing, like trading one kilo of good dates for two kilos of poor ones.TawarruqBuying something on credit and selling it on for cash, so you end up with money now and a bigger bill later without paying interest.Bai' al-InahSelling something to someone on credit and buying it straight back for less cash, so they get money now and owe more later.
Sources
- AAOIFI Shariah Standard No. (30) clause 4/1; Shariah Standard No. (2) clause 4/4; Bank Negara Malaysia, item 89