SlideShare une entreprise Scribd logo
1  sur  12
Télécharger pour lire hors ligne
MAHYUDDIN KHALID      emkay@salam.uitm.edu.my
CONTENT
               DEFINITION
 DEFINITION
               EVIDENCES
  EVIDENCES    PILLARS OF BAY AL-SARF
               CONDITIONS OF BAY AL-SARF
    PILLARS
               OPINION OF SCHOLARS
CONDITIONS
               MODERN APPLICATION

 OPINION OF
  SCHOLARS


APPLICATION




    2
DEFINITION
               Literal:
 DEFINITION
                  sale and purchase of money for money including gold
                   and silver
  EVIDENCES
               Technical:
    PILLARS       Sale of money for money such as the sale of gold-for-
                   gold or silver-for-silver.
CONDITIONS     Maliki scholars considers money exchange only if
                the sale of gold-for-gold or silver-for-silver but gold
 OPINION OF
  SCHOLARS      for silver does not belong to such transactions.
               Bay‟ al-sarf is a sale of something that is price in its
APPLICATION
                own nature for something which is also a price.
               It is regarded, as the sale of price for price and each
                price is a consideration for the other.
    3
EVIDENCE
               Hadith:
 DEFINITION
                 Ubadah ibn Samit narrated that Rasulullah (s.a.w) said
                  that: “Gold for gold, silver for silver, wheat for wheat,
  EVIDENCES
                  barley for barley, dates for dates, and salt for salt,
                  should be exchange like for like, equal for equal and
    PILLARS       hand-to-hand. If the types of exchanged commodities
                  are different, then sell them as you wish, if they are
CONDITIONS        exchanged on the basis of hand-to-hand transaction.”
                    Narrated by Muslim
 OPINION OF
  SCHOLARS     Ijma‟
                 All Islamic scholars unanimously agree on the
APPLICATION
                  permissibility of bay‟ al-sarf as it has been practice by
                  the people since the time of Prophet (s.a.w) until now
                  without any objections.

    4
PILLARS OF BAY’ AL-SARF
               Seller and buyer
 DEFINITION
               Merchandise/goods
  EVIDENCES    Price
               Sighah
    PILLARS



CONDITIONS


 OPINION OF
  SCHOLARS


APPLICATION




    5
CONDITIONS OF BAY’ AL-SARF

 DEFINITION   Taking possession before leaving one another
              • It is necessary that both the things exchanged shall be taken
  EVIDENCES     possession before the separation of the parties.
              • This is because departing with debts on both sides is not
    PILLARS     permitted as it is regarded as sale of debt against debt (bay‟
                al-kali‟ bi al-kali) which is prohibited.
CONDITIONS    Equal for equal transaction
 OPINION OF   • There can be no credit or postponement of delivery. The
  SCHOLARS      principle concerning money is that it cannot be sold or
                bought on credit.
APPLICATION
              • If the currency trading involves the exchange of currencies of
                the same genus such as silver for silver or gold for gold, they
                must be transacted in like-for-like even if they differ in
                quality since consideration is given only to quantity.
    6
CONDITIONS OF BAY’ AL-SARF

 DEFINITION   Freedom from khiyar syarat
              • An option of condition cannot be stipulated. One of the
  EVIDENCES
                contracting parties may stipulate certain conditions which
                if not met would grant a legal right to the stipulating
    PILLARS     party to rescind the contract.
              • However, khiyar „aib (option of defect) is allowed.
CONDITIONS
              Non deferment
 OPINION OF
  SCHOLARS    • Delivery of both counter values should not be deferred to
                a certain point of time in the future.
APPLICATION   • If one of the parties stipulated a deferment in the receipt
                of one of the currencies, the contract is rendered null and
                void as it has been prescribed that exchanges of goods
                eligible for riba should be on a hand-to-hand basis.
    7
BAY’ AL-SARF CONCEPT OF ON FOREX
               Spot Basis
 DEFINITION
                 Practice based on urf (customs)
  EVIDENCES
                 An exchange between items which are the same such as
                  currencies with currencies. By using analogy on the
                  hadith, majority of fuqaha‟ agree that all forms of
    PILLARS
                  currency should obey the rules established for gold and
                  silver exchanges
CONDITIONS
                 A consensus among Islamic jurists on the view that
 OPINION OF
                  currencies of different countries can be exchanged on a
  SCHOLARS        spot basis at a rate different from unity, since currencies
                  of different countries are distinct entities with different
APPLICATION       values or intrinsic worth, and purchasing power.



    8
BAY’ AL-SARF CONCEPT OF ON FOREX
               Forward Basis
 DEFINITION
                 In general, majority of scholars on the view that
                  currency exchange on a forward basis is not
  EVIDENCES       permissible, that is, when the rights and obligations of
                  both parties relate to a future date.
    PILLARS      However, recently the IFI practice bay al-sarf based on
                  waad (promise) or murabahah commodity
CONDITIONS
                  1.   Waad based using unilateral promise
                        The customer promise to purchase/ sell foreign currency
                         with a bank.
 OPINION OF
  SCHOLARS
                        A who is looking for a hedge will provide an undertaking to
                         buy a currency from B in the future. A is bound to fulfill its
                         promise to B however B is not under any obligation to act on
APPLICATION              the transaction when an offer of purchase is submitted.
                        Essential elements of the promise include the purchase price
                         of the currency and the delivery date. The promise must not
                         be conditional on any event.

    9
BAY’ AL-SARF CONCEPT OF ON FOREX
                2.   Murabahah commodity based
 DEFINITION           Customer and bank enter into two separate murabahah
                       transaction to facilitate forward foreign exchange contract.
  EVIDENCES           Customer will buy commodity for spot value and sell it to
                       the bank for purchase price plus agreed profit payable on
                       deferred basis.
    PILLARS
                      The bank will buy another commodity and sell it to the
                       customer again for the purchase price plus agreed profit on
CONDITIONS             deferred basis to address the other side of the forward deal.
                      Both the customer and the bank typically will sell the
 OPINION OF            commodity back to the market to recover their initial
  SCHOLARS             investment.

APPLICATION




    10
APPLICATION
               Bay‟ al-sarf is applicable to modern spot forex
 DEFINITION
                which is based on the spot rate which the deal
                settlement is expected to be completed shortly after
  EVIDENCES
                the contract has been executed.
    PILLARS    Majority of scholars opine that different currencies
                of different countries consist of different intrinsic
CONDITIONS      values and purchasing power.
               There are several IFI offer products construct using
 OPINION OF
  SCHOLARS      bay al-sarf such as:
                 Gold investment savings account
APPLICATION
                 Shariah compliant forex investment product



    11
END OF CHAPTER

 DEFINITION



  EVIDENCES



    PILLARS



CONDITIONS         
 OPINION OF
  SCHOLARS


APPLICATION




    12

Contenu connexe

Tendances (20)

Bay' al-Dayn
Bay' al-DaynBay' al-Dayn
Bay' al-Dayn
 
BAY' BITHAMAN AAJIL
BAY' BITHAMAN AAJILBAY' BITHAMAN AAJIL
BAY' BITHAMAN AAJIL
 
MURABAHAH
MURABAHAHMURABAHAH
MURABAHAH
 
Contract of Wadiah and its Application in Islamic Banking
Contract of Wadiah and its Application in Islamic BankingContract of Wadiah and its Application in Islamic Banking
Contract of Wadiah and its Application in Islamic Banking
 
ISB540 - MUAMALAH
ISB540 - MUAMALAHISB540 - MUAMALAH
ISB540 - MUAMALAH
 
BAY' AL-SALAM
BAY' AL-SALAMBAY' AL-SALAM
BAY' AL-SALAM
 
WADI'AH
WADI'AHWADI'AH
WADI'AH
 
Hibah
HibahHibah
Hibah
 
Bay’ al inah dan bay dayn
Bay’ al inah dan bay dayn Bay’ al inah dan bay dayn
Bay’ al inah dan bay dayn
 
bai al salam and istisna
bai al salam and istisnabai al salam and istisna
bai al salam and istisna
 
Muqasah
MuqasahMuqasah
Muqasah
 
Chapter 2 Shariah Stock Screening
Chapter 2   Shariah Stock ScreeningChapter 2   Shariah Stock Screening
Chapter 2 Shariah Stock Screening
 
Chapter 8 Derivatives in Islamic Finance
Chapter 8   Derivatives in Islamic FinanceChapter 8   Derivatives in Islamic Finance
Chapter 8 Derivatives in Islamic Finance
 
CONTRACT OF SALE (Al-Bay')
CONTRACT OF SALE (Al-Bay')CONTRACT OF SALE (Al-Bay')
CONTRACT OF SALE (Al-Bay')
 
bay as salam
 bay as salam  bay as salam
bay as salam
 
PS201-Chapter four
PS201-Chapter fourPS201-Chapter four
PS201-Chapter four
 
AL-QARDH
AL-QARDHAL-QARDH
AL-QARDH
 
ISLAMIC BANKING INSTRUMENTS IN APLLYING OF LETTER OF CREDIT (LC)
ISLAMIC BANKING INSTRUMENTS IN APLLYING OF LETTER OF CREDIT (LC) ISLAMIC BANKING INSTRUMENTS IN APLLYING OF LETTER OF CREDIT (LC)
ISLAMIC BANKING INSTRUMENTS IN APLLYING OF LETTER OF CREDIT (LC)
 
MUSHARAKAH
MUSHARAKAHMUSHARAKAH
MUSHARAKAH
 
Tawarruq: Islamic Personal Financing
Tawarruq: Islamic Personal FinancingTawarruq: Islamic Personal Financing
Tawarruq: Islamic Personal Financing
 

En vedette (7)

Chapter six
Chapter sixChapter six
Chapter six
 
ISB540 - Chapter 2
ISB540 - Chapter 2ISB540 - Chapter 2
ISB540 - Chapter 2
 
Canonical Sharia Contracts Applied To Modern Finance
Canonical Sharia Contracts Applied To Modern FinanceCanonical Sharia Contracts Applied To Modern Finance
Canonical Sharia Contracts Applied To Modern Finance
 
Islamic Finance 4
Islamic Finance 4Islamic Finance 4
Islamic Finance 4
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
 
Sale Transaction In Islamic Finance
Sale Transaction In Islamic FinanceSale Transaction In Islamic Finance
Sale Transaction In Islamic Finance
 
Fiqh Muamalat
Fiqh MuamalatFiqh Muamalat
Fiqh Muamalat
 

Similaire à Bay' al-Sarf (20)

Ijarah dan al sarf
Ijarah dan al sarfIjarah dan al sarf
Ijarah dan al sarf
 
ISB540 - Chapter 8
ISB540 - Chapter 8ISB540 - Chapter 8
ISB540 - Chapter 8
 
Islamic forex contracts
Islamic forex contractsIslamic forex contracts
Islamic forex contracts
 
ISB540 - Chapter 4
ISB540 - Chapter 4ISB540 - Chapter 4
ISB540 - Chapter 4
 
Riba and its prohibition
Riba and its prohibitionRiba and its prohibition
Riba and its prohibition
 
Al Bai Bithaman Ajil - Syariah and legal issues - the Malaysian Experience
Al Bai Bithaman Ajil - Syariah and legal issues - the Malaysian ExperienceAl Bai Bithaman Ajil - Syariah and legal issues - the Malaysian Experience
Al Bai Bithaman Ajil - Syariah and legal issues - the Malaysian Experience
 
bay al inah
 bay al inah bay al inah
bay al inah
 
AL-RAHN
AL-RAHNAL-RAHN
AL-RAHN
 
Islamic Finance Structure
Islamic Finance StructureIslamic Finance Structure
Islamic Finance Structure
 
ISB540 - Chapter 9
ISB540 - Chapter 9ISB540 - Chapter 9
ISB540 - Chapter 9
 
Types of Sukuk
Types of Sukuk Types of Sukuk
Types of Sukuk
 
Concept Of Riba in Islamic Muamalah Maliyah
Concept Of Riba in Islamic Muamalah MaliyahConcept Of Riba in Islamic Muamalah Maliyah
Concept Of Riba in Islamic Muamalah Maliyah
 
Sukuk al salam
Sukuk al salamSukuk al salam
Sukuk al salam
 
Ibm 2
Ibm 2Ibm 2
Ibm 2
 
indexation of Loan.ppt
indexation of Loan.pptindexation of Loan.ppt
indexation of Loan.ppt
 
Introduction to islamic banking & finance june 2010 1
Introduction to islamic banking & finance june 2010 1Introduction to islamic banking & finance june 2010 1
Introduction to islamic banking & finance june 2010 1
 
AL-KAFALAH
AL-KAFALAHAL-KAFALAH
AL-KAFALAH
 
Murabaha final presentation
Murabaha final presentation Murabaha final presentation
Murabaha final presentation
 
Isb540 riba-110405095012-phpapp02
Isb540 riba-110405095012-phpapp02Isb540 riba-110405095012-phpapp02
Isb540 riba-110405095012-phpapp02
 
Introduction to Islamic Business Terms
Introduction to Islamic Business Terms Introduction to Islamic Business Terms
Introduction to Islamic Business Terms
 

Plus de Mahyuddin Khalid

internal audit in develop countries perspective
internal audit in develop countries perspectiveinternal audit in develop countries perspective
internal audit in develop countries perspectiveMahyuddin Khalid
 
Tajuk 8 Penyahjajahan Dekolonisasi
Tajuk 8 Penyahjajahan DekolonisasiTajuk 8 Penyahjajahan Dekolonisasi
Tajuk 8 Penyahjajahan DekolonisasiMahyuddin Khalid
 
Tajuk 3 Logik dan Metodologi
Tajuk 3 Logik dan MetodologiTajuk 3 Logik dan Metodologi
Tajuk 3 Logik dan MetodologiMahyuddin Khalid
 
Tajuk 2 Falsafah dalam Kehidupan
Tajuk 2 Falsafah dalam KehidupanTajuk 2 Falsafah dalam Kehidupan
Tajuk 2 Falsafah dalam KehidupanMahyuddin Khalid
 
Tajuk 1 Pengenalan Ilmu Falsafah
Tajuk 1 Pengenalan Ilmu FalsafahTajuk 1 Pengenalan Ilmu Falsafah
Tajuk 1 Pengenalan Ilmu FalsafahMahyuddin Khalid
 
Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Pengenalan Kursus CTU552 Falsafah dan Isu SemasaPengenalan Kursus CTU552 Falsafah dan Isu Semasa
Pengenalan Kursus CTU552 Falsafah dan Isu SemasaMahyuddin Khalid
 
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu SemasaTajuk Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu SemasaMahyuddin Khalid
 
Risk Management in Takaful Operation
Risk Management in Takaful OperationRisk Management in Takaful Operation
Risk Management in Takaful OperationMahyuddin Khalid
 
Shariah Non-Compliance Risk
Shariah Non-Compliance RiskShariah Non-Compliance Risk
Shariah Non-Compliance RiskMahyuddin Khalid
 

Plus de Mahyuddin Khalid (20)

internal audit in develop countries perspective
internal audit in develop countries perspectiveinternal audit in develop countries perspective
internal audit in develop countries perspective
 
Tajuk 8 Penyahjajahan Dekolonisasi
Tajuk 8 Penyahjajahan DekolonisasiTajuk 8 Penyahjajahan Dekolonisasi
Tajuk 8 Penyahjajahan Dekolonisasi
 
Tajuk 7 Ideologi Semasa
Tajuk 7 Ideologi SemasaTajuk 7 Ideologi Semasa
Tajuk 7 Ideologi Semasa
 
Tajuk 6 Epistemologi
Tajuk 6 EpistemologiTajuk 6 Epistemologi
Tajuk 6 Epistemologi
 
Tajuk 5 Metafizik
Tajuk 5 MetafizikTajuk 5 Metafizik
Tajuk 5 Metafizik
 
Tajuk 4 Konsep Insan
Tajuk 4 Konsep InsanTajuk 4 Konsep Insan
Tajuk 4 Konsep Insan
 
Tajuk 3 Logik dan Metodologi
Tajuk 3 Logik dan MetodologiTajuk 3 Logik dan Metodologi
Tajuk 3 Logik dan Metodologi
 
Tajuk 2 Falsafah dalam Kehidupan
Tajuk 2 Falsafah dalam KehidupanTajuk 2 Falsafah dalam Kehidupan
Tajuk 2 Falsafah dalam Kehidupan
 
Tajuk 1 Pengenalan Ilmu Falsafah
Tajuk 1 Pengenalan Ilmu FalsafahTajuk 1 Pengenalan Ilmu Falsafah
Tajuk 1 Pengenalan Ilmu Falsafah
 
Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Pengenalan Kursus CTU552 Falsafah dan Isu SemasaPengenalan Kursus CTU552 Falsafah dan Isu Semasa
Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
 
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu SemasaTajuk Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
Tajuk Pengenalan Kursus CTU552 Falsafah dan Isu Semasa
 
Displaced Commercial Risk
Displaced Commercial RiskDisplaced Commercial Risk
Displaced Commercial Risk
 
Risk Management in Takaful Operation
Risk Management in Takaful OperationRisk Management in Takaful Operation
Risk Management in Takaful Operation
 
Equity Investment Risk
Equity Investment RiskEquity Investment Risk
Equity Investment Risk
 
Rate of Return Risk
Rate of Return RiskRate of Return Risk
Rate of Return Risk
 
Shariah Non-Compliance Risk
Shariah Non-Compliance RiskShariah Non-Compliance Risk
Shariah Non-Compliance Risk
 
Operational Risk
Operational Risk Operational Risk
Operational Risk
 
Market Risk
Market Risk Market Risk
Market Risk
 
Credit Risk
Credit RiskCredit Risk
Credit Risk
 
Liquidity Risk
Liquidity RiskLiquidity Risk
Liquidity Risk
 

Dernier

Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfMichael Silva
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 

Dernier (20)

Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdf
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 

Bay' al-Sarf

  • 1. MAHYUDDIN KHALID  emkay@salam.uitm.edu.my
  • 2. CONTENT  DEFINITION DEFINITION  EVIDENCES EVIDENCES  PILLARS OF BAY AL-SARF  CONDITIONS OF BAY AL-SARF PILLARS  OPINION OF SCHOLARS CONDITIONS  MODERN APPLICATION OPINION OF SCHOLARS APPLICATION 2
  • 3. DEFINITION  Literal: DEFINITION  sale and purchase of money for money including gold and silver EVIDENCES  Technical: PILLARS  Sale of money for money such as the sale of gold-for- gold or silver-for-silver. CONDITIONS  Maliki scholars considers money exchange only if the sale of gold-for-gold or silver-for-silver but gold OPINION OF SCHOLARS for silver does not belong to such transactions.  Bay‟ al-sarf is a sale of something that is price in its APPLICATION own nature for something which is also a price.  It is regarded, as the sale of price for price and each price is a consideration for the other. 3
  • 4. EVIDENCE  Hadith: DEFINITION  Ubadah ibn Samit narrated that Rasulullah (s.a.w) said that: “Gold for gold, silver for silver, wheat for wheat, EVIDENCES barley for barley, dates for dates, and salt for salt, should be exchange like for like, equal for equal and PILLARS hand-to-hand. If the types of exchanged commodities are different, then sell them as you wish, if they are CONDITIONS exchanged on the basis of hand-to-hand transaction.”  Narrated by Muslim OPINION OF SCHOLARS  Ijma‟  All Islamic scholars unanimously agree on the APPLICATION permissibility of bay‟ al-sarf as it has been practice by the people since the time of Prophet (s.a.w) until now without any objections. 4
  • 5. PILLARS OF BAY’ AL-SARF  Seller and buyer DEFINITION  Merchandise/goods EVIDENCES  Price  Sighah PILLARS CONDITIONS OPINION OF SCHOLARS APPLICATION 5
  • 6. CONDITIONS OF BAY’ AL-SARF DEFINITION Taking possession before leaving one another • It is necessary that both the things exchanged shall be taken EVIDENCES possession before the separation of the parties. • This is because departing with debts on both sides is not PILLARS permitted as it is regarded as sale of debt against debt (bay‟ al-kali‟ bi al-kali) which is prohibited. CONDITIONS Equal for equal transaction OPINION OF • There can be no credit or postponement of delivery. The SCHOLARS principle concerning money is that it cannot be sold or bought on credit. APPLICATION • If the currency trading involves the exchange of currencies of the same genus such as silver for silver or gold for gold, they must be transacted in like-for-like even if they differ in quality since consideration is given only to quantity. 6
  • 7. CONDITIONS OF BAY’ AL-SARF DEFINITION Freedom from khiyar syarat • An option of condition cannot be stipulated. One of the EVIDENCES contracting parties may stipulate certain conditions which if not met would grant a legal right to the stipulating PILLARS party to rescind the contract. • However, khiyar „aib (option of defect) is allowed. CONDITIONS Non deferment OPINION OF SCHOLARS • Delivery of both counter values should not be deferred to a certain point of time in the future. APPLICATION • If one of the parties stipulated a deferment in the receipt of one of the currencies, the contract is rendered null and void as it has been prescribed that exchanges of goods eligible for riba should be on a hand-to-hand basis. 7
  • 8. BAY’ AL-SARF CONCEPT OF ON FOREX  Spot Basis DEFINITION  Practice based on urf (customs) EVIDENCES  An exchange between items which are the same such as currencies with currencies. By using analogy on the hadith, majority of fuqaha‟ agree that all forms of PILLARS currency should obey the rules established for gold and silver exchanges CONDITIONS  A consensus among Islamic jurists on the view that OPINION OF currencies of different countries can be exchanged on a SCHOLARS spot basis at a rate different from unity, since currencies of different countries are distinct entities with different APPLICATION values or intrinsic worth, and purchasing power. 8
  • 9. BAY’ AL-SARF CONCEPT OF ON FOREX  Forward Basis DEFINITION  In general, majority of scholars on the view that currency exchange on a forward basis is not EVIDENCES permissible, that is, when the rights and obligations of both parties relate to a future date. PILLARS  However, recently the IFI practice bay al-sarf based on waad (promise) or murabahah commodity CONDITIONS 1. Waad based using unilateral promise  The customer promise to purchase/ sell foreign currency with a bank. OPINION OF SCHOLARS  A who is looking for a hedge will provide an undertaking to buy a currency from B in the future. A is bound to fulfill its promise to B however B is not under any obligation to act on APPLICATION the transaction when an offer of purchase is submitted.  Essential elements of the promise include the purchase price of the currency and the delivery date. The promise must not be conditional on any event. 9
  • 10. BAY’ AL-SARF CONCEPT OF ON FOREX 2. Murabahah commodity based DEFINITION  Customer and bank enter into two separate murabahah transaction to facilitate forward foreign exchange contract. EVIDENCES  Customer will buy commodity for spot value and sell it to the bank for purchase price plus agreed profit payable on deferred basis. PILLARS  The bank will buy another commodity and sell it to the customer again for the purchase price plus agreed profit on CONDITIONS deferred basis to address the other side of the forward deal.  Both the customer and the bank typically will sell the OPINION OF commodity back to the market to recover their initial SCHOLARS investment. APPLICATION 10
  • 11. APPLICATION  Bay‟ al-sarf is applicable to modern spot forex DEFINITION which is based on the spot rate which the deal settlement is expected to be completed shortly after EVIDENCES the contract has been executed. PILLARS  Majority of scholars opine that different currencies of different countries consist of different intrinsic CONDITIONS values and purchasing power.  There are several IFI offer products construct using OPINION OF SCHOLARS bay al-sarf such as:  Gold investment savings account APPLICATION  Shariah compliant forex investment product 11
  • 12. END OF CHAPTER DEFINITION EVIDENCES PILLARS CONDITIONS  OPINION OF SCHOLARS APPLICATION 12