Abu Minhal says: I asked Sayyiduna Bara’ bin Azib and Sayyiduna Zayd bin Arqam (may Allah be pleased with them both) about the exchange of gold and silver, but one of them said: Ask him, for he is better and more knowledgeable than me, and the other said: Ask him, for he is better and more knowledgeable than me. Then I asked both of them, and both said: The Messenger of Allah (peace and blessings be upon him) forbade selling gold for silver on credit.

It is narrated from Abu Minhal that Sayyiduna Zayd bin Arqam and Sayyiduna Bara’ bin Azib (may Allah be pleased with them both) were partners and associates. Once, they bought some silver, part in cash and part on credit. When the Prophet Muhammad (peace and blessings be upon him) came to know of this, he instructed both of them, saying: Keep the transaction that was done in cash, and return what was done on credit.

It is narrated from Sayyiduna Abu Hurairah, Sayyiduna Abu Sa‘id, and Sayyiduna Jabir (may Allah be pleased with them), either from all three or from two of them, that the Noble Prophet (peace and blessings be upon him and his family) forbade the transaction of sarf (exchange of gold and silver).

It is narrated from Abu Qalabah that Sayyiduna Hisham bin ‘Amir (may Allah be pleased with him) came to Basra and saw that people there were buying gold in exchange for silver on credit. So he stood up and said that the Messenger of Allah (peace and blessings be upon him) forbade selling gold for silver on credit, and also said that this is usury.

Sayyiduna Malik bin Aws bin Hadthan says: I engaged in a currency exchange of silver for gold with Sayyiduna Talhah bin Ubaidullah (may Allah be pleased with him). He said: Grant me respite until my clerk returns from Ghabah. But Sayyiduna Umar bin Khattab (may Allah be pleased with him) heard this and said: No, by Allah! You cannot separate from them before taking the coins in exchange, because I heard the Messenger of Allah (peace and blessings be upon him) say: Trading silver for gold is usury, except when it is hand to hand.

It is narrated from Sayyiduna Abdullah bin Umar, may Allah be pleased with them both, that he said: I asked the Noble Prophet, peace and blessings be upon him, whether I could buy gold in exchange for silver or silver in exchange for gold. The Prophet, peace and blessings be upon him, said: When you purchase one thing in exchange for another, your companion should not part from you while there remains anything related to that transaction between you and him.

It is narrated from Sayyiduna Abdullah bin Umar (may Allah be pleased with them both), he says: I used to trade camels in Baqi‘ and would deal in dinars, but would take dirhams instead, and similarly, I would deal in dirhams and would take dinars instead. So I came to the Noble Prophet (peace and blessings be upon him) while he was either entering his chamber or coming out of the house of Sayyidah Hafsa (may Allah be pleased with her). I held onto his garment and asked him about this trade. The Prophet (peace and blessings be upon him) said: (It is permissible, but) when you exchange one thing for another in dirhams and dinars, then let not the other man separate from you while there remains anything of that transaction between you. In another narration, the Prophet (peace and blessings be upon him) said: If you take it at the rate of that same day, then there is no harm in doing so, but the condition is that you do not separate while there remains anything of that transaction between you.

Narrated from Sayyiduna Abdullah bin Abbas (may Allah be pleased with them) that Sayyiduna Usama bin Zaid (may Allah be pleased with them) reports that the Messenger of Allah (peace and blessings be upon him) said: There is no usury in hand-to-hand trade. That is, usury is only in deferred transactions. In another narration, the Messenger of Allah (peace and blessings be upon him) said: Usury is in deferred transactions.

Narrated by Sayyiduna Abdullah bin Abbas (may Allah be pleased with them both) that Sayyiduna Usama bin Zaid (may Allah be pleased with them both) reports that the Messenger of Allah (peace and blessings be upon him) said: In a hand-to-hand transaction, there is no usury. That is, usury is only in deferred payment. In another narration, the Messenger of Allah (peace and blessings be upon him) said: Usury is in deferred payment.

It is narrated from Sayyiduna Usama bin Zaid (may Allah be pleased with them both) that the Messenger of Allah (peace and blessings be upon him) said: There is no usury except in credit.