Bai` al-Sarf - Appendices

Transcription

1. Bai ` al-Sarf (Currency Exchange) 13 of 16 APPENDICES Appendix 1 Legitimacy of bai` al-sarf The Quran 1. The following verse of the Quran implies the general permissibility of sales contract including bai` al-sarf: ‫الربَا‬ ِّ ‫َح َّل اللَّـوُ الْبَـْي َع َو َحَّرَم‬ َ ‫َوأ‬ “…whereas Allah SWT has permitted trading and forbidden usury…”10 The Sunnah of the Prophet Muhammad (peace be upon him) 2. The legality of bai` al-sarf is indicated in the following hadith: ‫"الذىب بالذىب والفضة بالفضة والرب بالرب والشعري بالشعري والتمر بالتمر وامللح بامللح‬ ‫ فإذا اختلفت ىذه األصناف فبيعوا كيف شئتم إذا كان‬،‫مثالً مبثل سواء بسواء يداً بيد‬ "‫يداً بيد‬ “[Exchange of] gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, or salt for salt [shall be] in equal quantities and hand to hand (spot). If they differ in type, you may trade them as you wish provided it is hand to hand (without deferment on either side)”11 The modern currencies are being used as medium of exchange which have same features (`illah thamaniyyah) with the gold and silver. Therefore, the rules of exchange of gold and silver as mentioned in the above hadith are also applied to the modern currencies. 10 11 Surah al-Baqarah, verse 275. Sahih Muslim, hadith no. 2970. Issued on: 11 April 2018
2. Bai ` al-Sarf (Currency Exchange) 14 of 16 Appendix 2 Glossary Terms Definition Hiwalah al-dayn Assignment/transfer of debt from the liability of the original debtor to the liability of a third person so that the original debtor becomes free of liability Offer Services contract Option arising from a defect; the option of dissolving or continuing the contract upon discovery of a defect in the asset purchased Conditional option Offsetting Bilateral binding promises Ijab ijarah al-khadamat Khiyar al-`ayb Khiyar al-shart Muqassah Muwa`adah mulzimah Qabd haqiqi Qabd hukmi Qabul `Urbun `Urf tijari Wa`d Wakalah Wakil Issued on: 11 April 2018 Physical possession. It refers to a state where a person has actual possession and the rights to control an asset Constructive possession. It does not refer to an actual possession, but it is a presumptive possession based on the right of the owner towards an asset Acceptance Earnest money paid to secure purchase of an asset in an exchange contract which is considered part of the price if the purchaser decides to continue the contract and is not refundable Customary business practice which is acceptable by the community and does not contradict the Shariah principles A promise or undertaking which refers to an expression of commitment given by one party to another to perform certain action(s) in the future Agency Agent
3. Bai ` al-Sarf (Currency Exchange) 15 of 16 Appendix 3 Exchange rules of currency USD Currency MYR Issued on: 11 April 2018 Currency USD MYR 1. On the spot 1. On the spot 2. At par 1. On the spot 1. On the spot 2. At par
4. Bai ` al-Sarf (Currency Exchange) 16 of 16 Appendix 4 Illustration of bai` al-sarf application Bai` al-sarf may be applied either as a supplementary transaction or as the main underlying contract of a product. In this regard, this policy document outlines examples of bai` al-sarf application in two (2) categories. Example 1: Bai` al-sarf application in foreign exchange investment product  Bai` al-sarf as supplementary contract for currency conversion in a foreign currency trading product such as cross currency swap. Example 2: Bai` al-sarf application in foreign currency financing  Bai` al-sarf transacted during the conversion of currencies, such as during the payment of foreign currency financing instalments. Issued on: 11 April 2018