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Hanafi Fiqh

Application of hadith – Muslim (2970)

The Messenger of Allah (blessings and peace of Allah be upon him) said: “Gold for gold, silver for silver, like for like, same for same, hand to hand. If any of these things are different, then sell however you like, so long as it is hand to hand.” Narrated by Muslim (2970).The scholars of the past, may Allah have mercy upon them, had done some qiyas and included to the list various products which I think is a different issue.

The scholars of our time have included the paper money/fiat currency to gold and silver using qiyas. Based on what I have researched, I believe this is not a right qiyas assuming the qiyas is a source of shariah. This neglects/misses the hikmah of the hadith and perhaps ironically serves as a tool against what is intended by the very hadith, Allahu A’lam.
This hadith should have been taken within its apparent meaning with no qiyas for shari’ rulings, but perhaps for an Islamic ruler the hikmah behind this hadith could have been helpful when he, for instance, had to decide to freeze/stop in the markets certain transactions for the benefit of the ummah on a temporary basis.

Gold and silver had historically been a medium of exchange. And what I have understood from the hadith and my own research is that it is permissible that gold/silver is exchanged for the purpose of loan but not as a transaction such as sale/purchase except when it is like for like, same for same and hand to hand. If we think about it, such sale/purchase transactions would be very rare in comparison with other transactions in the market except when someone needs to change his gold to silver or vice versa, and to convert into smaller silver/gold coins/parts, otherwise there is no much point in changing the same gold/silver to the same, like for like. So, why the Prophet peace be upon him would forbid this? Allah and His messenger know best.

I have the below points for clarification:
i. Current financial system which is based on riba
Paper money/fiat currencies (all that I am aware of) originated using the gold standard which is a monetary system where a country’s currency or paper money has a value directly linked to gold. At the beginning, people believed the paper they hold has value in gold so they had confidence and trust to use them as a medium of exchange. The trend continued until people started to see a value in papers they use (e.g. now), then the countries stopped backing their currencies by gold. As per the hadith, linking paper money to gold as a medium of exchange would have been haram. (?).
After abolishing the gold standard, now governments can print money as much as they want, and nowadays they don’t even have to print, it is just a number to add, although they use fancy words that ordinary people don’t understand such quantitative easing etc. when they refer to printing money. Moreover, releasing money to circulation is based on the riba in the west and other countries including Muslim majority countries.
The hadith indicates that we have to use gold/silver.
ii. Implications of using paper money/fiat currency
This has directly resulted in social injustice and unjust wealth distribution within the nations and across the nations. The value of the paper money can be controlled by the central banks on top of the demand and supply in the market. This is unlike gold/silver where only market conditions would determine the price/value.
In simple terms, even if the market conditions remained unchanged my 100 GBP would not have the same value in a year because the government would decrease its value by their so called “targeted inflation” policy. So, I have to either spend it, invest it or give it as a loan to a riba based bank. The list goes on…
Fiat currency has caused the prices for good/services higher as it is very easy to transact with – you may have billions in your card and you can go anywhere you want and spend in any way you want, which would not be the case with gold/silver. This has also given an opportunity to the greedy to collate more than they could. If they had 100kg of gold they would struggle to keep/preserve it, but with paper money, this is not an issue for them. Other impacts like this which are only known to Allah has created unjust wealth distribution in our times within society.

iii. Imbalance in international political landscape.
Now that governments do not follow the gold standard, they keep foreign currency reserves, in gold and other assets. The US dollar is apparently by far the most important currency in global reserves, accounting for some 66% of the total at the end of 2004 according to the IMF Annual Report 2005. Basically, other countries have to keep USD or other western currencies to take part in the international financial market. As we said these currencies are nothing but a promise for a monetary value (which decreases in value all the time) and can be “printed” as much as the owner government wants (such was the case during Covid in US/EU/UK). These governments may put any country into sanctions list if they want to.. This list goes on too…

As a conclusion, I think, the intention behind the hadith was to keep gold/silver as a medium of exchange. And we seem to have got it so wrong so much so we made something impermissible permissible and moreover put in in the same status as gold/silver unintentionally.
Now based on the above, please let me know if this qiyas – adding paper money to the list of gold/silver- was correct or not, what are the implications of this? I know it is not Muslims who invented the paper money, but we made it permissible for ourselves in the past and now? Muslim nations followed their method in introducing paper money and all of them keep their reserves in riba based western currencies, our central banks follow a monetary system which is again riba based.
Haven’t we got this wrong initially and created unfounded/unnecessary hardship to individual Muslims, although the challenge should be directed to Muslim nations’ leaders/governments for enforcing riba over the ummah? Individual Muslims get their salary/wages in an exchange to their work/products based on the custom now without full story, but if all were aware this issue, that would be the first step…

Hanafi Fiqh

Ssing haram money to pay off debts

Salam,

Can I use haram money to pay off my dads debts? I live with my dad in his home and contribute to the household. My dad is retired and will probably not make enough money to pay off his debts unless he sells our home. I have on occasion paid small amounts to his creditors. My question is can I use haram money from various sources which have unintentionally accumulated (some money from a bank as incentive to join, some from haram stocks, some from dodgy crytpo, some from my salary for hours I dont think I worked) to pay off some of his debts.

JazaakAllahukhair

Hanafi Fiqh

Investment bank stocks and zakat

Question 1:
Is investing in commercial and investment banks stocks allowed. Like Citi Bank or JP Morgan.

Question 2:
We have stocks which are bought not for sale but holding long term. Is there zakat on it.

Question3:
We have land which is not for sale and to hold long term. Do we pay zakat on it.

Hanafi Fiqh

Inheritance of late husband’s car

My husband recently passed away and is survived by myself (wife), both his parents and 7 brothers and 3 sisters.
He leaves behind £8000 in his bank and a pension from work, the amount yet to be confirmed. He also bought a car on finance, which had £4000 remaining which I have cleared using his money.
According to the Sharia law, how is the money distributed?
Does the car fall under the inheritance distribution?
If not, who inherits the car?

Hanafi Fiqh

Is ‘free betting’ haram

I saw in my email a promotion where a gambling website was giving £20 gambling money completely free. I took it and put it on a random football fixture and it doubled so I withdrew it back into my bank account. Sir, could you instruct me if this money is haram or not as I took no risk so am unsure where it leans.

King Regards

Hanafi Fiqh

Working in a data centre

Hello dear Scholars of islam

i have an urgent question about my situation

i am currently working as an IT technician. my duties consist of working in a data center.
A data center or data center is a building, a dedicated space within a building, or a group of buildings used
to house computer systems and associated components, such as telecommunications and storage systems, servers etc..
We mainly do small jobs like changing power supply units or installing and removing servers or wiring and unwiring.
Also small troubleshooting.

we work for different customers. Our company serves mainly 3 customers.
1 customer is a company where they rent their data centers to other customers.
2 customer is a manufacturer of electrical equipment and helps with the production of trains.
3 customer is a bank where we mainly do cabling and decabling.

customer 3
it is allowed to work at a bank if you mainly do wiring and unwiring. I have read some fatwas that say it is allowed to work
as a security guard, cleaner or in a call center.
Above all, I do unwiring. Unwiring is nothing more than cleaning up, like a cleaner would do.
Because these cables are no longer needed and are just lying around.
Cabling is connecting new devices with the necessary cables so that you can improve or expand your systems with which you can, for example
, to run interest transactions.
the cables taken out can be checked but i don’t do that otherwise i would equip them with cables again
is it allowed to work for this customer ?

customer 1
This is a company that rents out their datacenter. Their customers can also be banks or insurance companies. Me and my boss
do not know who their customers are. Can I work there or not? At this customer we do all the work I mentioned above.

customer 2
Is a manufacturer of electrical equipment and helps in the production of trains. They do not rent their datacenter. This data center is theirs.
I think it is the best place for me to work. At this customer we also do all the work I mentioned above.

I have read some fatwas. One says it is completely forbidden to work in a bank, even if you work for a company that has a bank as a client
and you should quit. Another says if you work as a cleaner or security guard or in a call center it is allowed,
because you are not directly involved with sin. Another says that you should not quit directly but first look for a new job. I work,
because my family needs financial support. We could live without my contribution, but it would be harder to pay all these bills.

I also talked to my boss about this issue and he can’t guarantee me that I can only work for the manufacturer of electrical equipment.
there can be emergencies or we have too little staff in the other projects. is it bad if I try to work all the time in the manufacturer of electrical equipment
but go to the other 2 customers only in case of urgencies or on the order of the boss,
if that would happen ?

Besides there are on-call services (24 hours a day) for the manufacturer of electrical equipment and the company that rents out its data center.
I would have to do this as well.would this be allowed ?

I see only 4 possibilities

– either I force my boss to make me work only at the manufacturer of electrical equipment and not to be on-call services (24 hours a day)
and not to be present in any emergencies in the other projects.
– I try to work as much as possible at the manufacturer of electrical equipment if possible
– I quit immediately
– I will work at this company until I find a new job.

if there are other possibilities I would be open to hear them.

I have been working at the bank for about the last 6 months unwiring and rewiring.is the money that i made haram.
I just had a bad feeling that I could get interest money. Then I read a fatwa
saying that if a company gets interest money it is allowed for a worker. I thought that you are not allowed to work for a bank directly.
(employed), but my case was that I was working for another company that was servicing a client, which unfortunately is a bank.
In addition, I never thought about whether it was forbidden to work at a bank.

and what about the money I earn now or will make in the future is that also Haram, as long as I do not work at the manufacturer of electrical equipment. and
if my boss forces me to work for the other customers. He did not guarantee that I will always work for the manufacturer of electrical equipment.
if I quit, I may get a notice period and have to work for another month.
My boss could force me to work this month at the bank or at the customer who rents his data center.
rents. What is the best thing to do.

I have also set aside some of this money. Is this money also haram. and I bought some things with this money is this also haram.
What should I do with this money or property.

If there are any questions you can write me on my email address. It is important to me that I get an answer as soon as possible.
because if this job is haram i will leave it.

my english is not so good so i would appreciate if you can explain it as simple as possible. Also feel free to give a long and
detailed answer with all the proofs. I would be glad if you can make a small summary at the end in this case.

Jazak Allah (s.w.t)

Hanafi Fiqh

Working as an IT programmer in conventional plus Islamic bank organization?

Dear Brother,

I recently got a job offer to work as an IT programmer at a conventional plus Islamic bank unit

Since I will be working as an outsourced consultant in the IT department of the bank, I would like to know whether my monthly income from my agency will be halal, If my daily IT job is not directly/ in-directly involved in the “credit card” and “interest” based transactions.

جَزَاكَ ٱللَّٰهُ خَيْرًا‎

Hanafi Fiqh

Buying and selling gold jewellery online

Can I buy gold jewerrely online where by I make a payment to the seller using bank transfer of paper money or do the same using my bank card. The seller then sends me the gold item by post? Did we exchange the gold and paper money on the spot or not please?

Also can I sell the gold in same manner online for a profit and post customers gold jewellery after I have received payment?

I am concerned about the Hadith recently seen cited in (Muslim) where gold is to be paid for by gold, silver for silver, barley for barley, dates by dates, salt by salt like for like equal for equal weight. Prophet Muhammad SAWS also stated sell as you wish if the classes differ as long as payment is made on the spot.

Did this Hadith only relate to gold and silver coins not jewellery? Today we are using paper money which all four school of thoughts have agreed is not from the commodity included in this hadith so it does not come under dealing with interest.

Therefore I am buying and selling gold using paper money is this halal even though the goods are not been exchanged hand by hand and for a commodity not included in the Hadith
(Paper money)
Please help.
Thank you kindly.

Hanafi Fiqh

Islamic finance in the UK

Assalamualaykum I would like to know what ruling do we have regarding Islamic finance in the UK. gatehouse Bank are one of the new providers of Islamic finance in UK. There is also a broker company who get the finance for you called halal options. If you can clarify ruling on this issue and what advice you can give which can help us stay away from interest related mortgages.
Jazakallah

Hanafi Fiqh

Is a fixed interest loan Riba?

Assalamualaikum Sheikh.

Inshaallah I hope you’re doing well.

I will be going to university in the UK for my UG for 4 years. My father has decided that he wants to take a loan from the bank with a fixed interest of an agreed amount (about 1% which he’s happy with) in order to pay for the tuition without worry during those 4 years. He’ll pay for the first part and he said I’ll pay once I’ve finished.

Is this Riba? Can you please help me define Riba in layman’s terms and what is the halal way of loans and banks?

Al Azhar University fatwa allows for fixed returns on Bank deposits

I’m trying to get another opinion because I’ve linked a fatwa by al-Azhar that seemingly says that it’s permissible? Inshaallah you can clarify this for me as I may have misunderstood. I thought it’ll be better if I ask directly.

Please make du’a for me and may Allah reward you. Assalamualaikum.