Riba, Interest and the Question We Have Not Fully Answered
There is a question about riba that deserves more careful discussion. Not because the Qur'an is unclear about its prohibition. It is not. The question is different: What exactly is the economic relationship that the Qur'an calls riba, and how should we understand that relationship when the entire financial structure of the economy has changed? This is not an attempt to deny the classical prohibition. It is an attempt to understand it more deeply. What Does the Qur'an Actually Say About Riba? The Qur'an does not give us a simple dictionary definition of riba. Instead, it describes the practice and draws a clear distinction between trade and riba: "Allah has permitted trade and forbidden riba." In Qur'an 2:275–280, the discussion is closely connected with debt. The creditor is entitled to the principal, while the Qur'an says that neither party should wrong the other. It also instructs creditors to give respite to a debtor in genuine difficulty. The Qur...