Re: Interest…
Islam is against stagnancy of money and encourages circulation of money. Every transaction which happens generates economic activity. It is this economic activity which generates prosperity and thus Islam’s circulation concept is benefecial for any economy.
If you consider money as a commodity like any other commodity and allow buying and selling of money, how it can be haram. The market forces determine the value of money and price of money. For all practical reason money is a commodity. The value of each currency depends on the economic fundamentals of the country and the price of this currency depends on various factors such as future prospects, demand for the currency etc.
What do the banks do. They buy money at the prevailing market price, charge their service charges and sell money at prevailing market prices. Any transaction done naturally by market forces is not haram in Islam. It is just like buying and selling any other commodity where in market forces determine the value of that specific commodity.
Now the end result of banking system is that it brings otherwise stagnant money in to productive channels. Thus this frozen money also becomes productive and transactions done through this money generate employment, prosperity, and business.
Actually the problem with our Islamic societies is what I have been advocating all along. Mullahism…
These people without understanding ABC of a particular subject start giving fatwas. Keep in mind three principles of sunnah and life will become much easier for all of us.
Actions for betterment of Islam.
Actions for moral uplifting of humankind.
ACTIONS SHOULD BE LOGICAL.
In the light of these principles you can reform according to the requirements of the day.
Nice post bro. One question though todays money is not a commodity in the sense that it has an intrinsic or physical value. Riba or usury is existant on goods of intrinsic value. Todays money may be a commodity from a trading perspective though. So to understand Riba on it, my opinion is that it should be converted into a solid commodity first or if taken in its fluid form then its inflation or deflation must be accounted for.
