Fadālah ibn ‘Ubayd reported: We were with the Messenger of Allah (may Allah's peace and blessings be upon him) on the Day of Khaybar, making deals with the Jews with the Wuqiyyah of gold for two or three dinars, whereupon the Messenger of Allah (may Allah's peace and blessings be upon him) said: Do not sell gold for gold except weight for weight..
Commentary :
Riba (usury) is one of the types of exploitation in transactions. It entails great harm and involves unlawful earnings and taking extra money wrongfully. Therefore, it has been prohibited in all the laws that have been revealed. Riba al-Fadl (usury of surplus) is one of the types of Riba, and it means selling an item that is subject to Riba rulings for another of the same type with excess in one of the two, like selling a gold dinar for two dinars and a silver dirham for two dirhams.
In this Hadīth, Fadālah ibn ‘Ubayd (may Allah be pleased with him) narrates that they were with the Messenger of Allah (may Allah's peace and blessings be upon him) in the Battle of Khaybar in 7 AH. They were making deals with the Jews and buying from them one Wuqiyyah of gold worth forty silver dirhams for "two or three dinars", and the dinar was equal to 12 dirhams. It could mean they were selling one' Uqiyyah of gold, beads, and others for two or three dinars. It is known that this amount of pure gold is not to be sold for two or three dinars, and this was the reason why the Companions made such a transaction, as they thought it was permissible because the gold was mixed with other things. However, the Prophet (may Allah's peace and blessings be upon him) forbade them from selling gold for gold "except weight for weight," i.e., each must be equal to the other in terms of weight without any addition or surplus.
The Hadīth highlights the prohibition of Riba al-Fadl (usury of surplus)..
