The requirements for the liquidity of differential barter exchanges when the considerations are measurable in terms of weight and heterogeneous

Document Type : Original Article

Authors

1 Level four seminaries Teacher of higher levels of Qom seminary

2 Associate Professor, Faculty of Economics - Director of Islamic Economics and Banking - kharazmi University. Tehran. Iran. Level four seminaries

Abstract

In many barter agreements, the heterogeneity of the bartered goods creates an imbalance concerning the values of the considerations. Thus, all Shiite jurists believe that if the considerations of such contracts are homogeneous and measurable in terms of weight, they are usury and should be considered invalid.
Moreover, some jurists have argued that when such considerations are measurable in terms of weight but not heterogeneous, their validity will depend on the use of cash.
Thus, the current study aimed to investigate whether the long-term forms of such contracts (as credit or forward sales) are acceptable, or they should be limited to cash transactions.
Another question is if the long-term transactions were deemed invalid, is there an alternative to meet the needs of markets or not.
The current study was aimed to process the collected data by relying on religious and prophetic accounts in an analytical-critical manner. Thus, it was found that the investigated type of transaction was invalid in the form of credit sales, though it is not forbidden (i.e., haram). Consequently, entering such transactions with martial (harbi) infidels and possessing properties obtained through them is not forbidden for Muslims nevertheless, if the tributary (dhimmi) infidels or Muslims were parties to such transactions, two transactions in the form of “goods for money” can be implemented and use barter exchanges instead of the foreign transaction of money.

Keywords

Civil Jurisprudence Doctrines

Articles in Press, Accepted Manuscript
Available Online from 13 December 2023

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