Can a 1400 year old Islamic principle work in modern world Currency Exchange? Riba Part 4 ========================================= Following on from Yesterday Part 3 on Riba When selling Dollars for Dirham, one goes to the money exchanger and hands over Dollars and immediately receives UAE Dirham. This is what is termed as Hand to Hand. Since currency is classified under the same category as Gold and Silver , hence there can be no delay. Now lets examine another aspect of money exchange. Did you know that Foreign Exchange are priced using US Dollars as a benchmark / medium of exchange like we use Money as a medium of exchange when buying and selling goods. If One wants to sell Swiss Franc to Buy UAE Dihram, the Money exchanger and or the Foreign Exchange dealer actually prices them as two separate transaction to arrive at the final price. Example. They will price ( convert) Swiss Franc into the US Dollar and with this US Dollar Value they will price (Convert) into UAE Dihram. This provides the exact ratio of Swiss Franc to UAE Dihram. This is NO different when Islam says Sell on quality and with that buy lesser or better quality. When some people say , Sharia law dates back to 1400 years and cannot fit in today’s modern world . Think Again !!! The Foreign Exchange market actually uses Islam’s medium of exchange philosophy and transparence by converting every currency into dollars to arrive at the other currency. Remember the hadith of Prophet Muhammed (PBUH) mentioned in our posting of yesterday in reference to Bilal (RA) on Dates. Where Prophet Muhammed (PBUH) said : “Sell your 2 Sa’ of inferior Dates and with the money Buy 1 Sa’ of quality Dates”. The Pricing of Swiss Franc to US Dollar and US Dollar to Dirham shows us that US Dollar is used as a medium of Benchmark /Exchange.
Posted on: Tue, 29 Oct 2013 13:24:12 +0000
Trending Topics
Recently Viewed Topics
© 2015