According to the Hanbali school of thought (mazhab), monetization (or in Arabic “tawarruq“) is the process of purchasing a commodity for a deferred price and selling it to a third party for a spot price in pursuit of cash. For example, a person may purchase a ton of copper for $7,300 on a deferred basis (3 months) and sell it to a party other than the original seller for $7,100. As such, this person obtains a cash amount of $7,100, which has to be paid off after three months in addition to $200. The majority of fuqaha (jumhur) agree that monetization or tawarruq is a shari’a-compatible transaction, especially if it actually involves three parties (a seller, a buyer/reseller, and a third party buyer). Some fuqaha (e.g., Ibn Taymiyyah and Ibn al-Qayyim considered it illegal because in their opinion it is a harmful transaction and might be used as a hilah (legal trick or ruse).
Islamic Finance
[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]
[pt_view id=d3cfcfcp7w]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] 
[/su_column][/su_row][/su_box]
[/su_column][/su_row][/su_box]
Comments