Tawarruq

Tawarruq (Monetization/ Cash Financing/ Cash Procurement): Tawarruq is the infinitive (masdar) of the verb tawarraqa (to eat leaves); it is said as tawarraqa al-hayawan (i.e., the animal ate the leaves). Literally: from wariq: silver; also dirhams, which are coined from silver. Awraqa: to become rich. Some say it refers to both minted and non-minted silver (al-fidhah al-madhrubah or al-fidhah ghayr al-madhrubah). Tawarruq was, therefore, used by earlier generations for the purpose of seeking silver money, while it is used nowadays for seeking paper money, and that is a valid literal usage derived from the same word. Hence, the monetisation beneficiary is called mutawarriq. Technically: tawarruq is a term commonly used in the books of the Hanbali school of law while other schools mention the form of tawarruq under the rubric of bay' al-ajal and bay' al- 'inah (sale and buyback). Hence, the technical meaning varies according to its different types. The Al-Mawsu'ah al-Fiqhiyyah Al-Kuwaytiyyah (Fiqh Encyclopedia of Kuwait) defined tawarruq as buying a commodity with deferred payment and selling it to a person other than the buyer for a lower price with immediate payment. See ISRA Islamic Financial System: Principles and Operations for further details.

Total Fatwas : 52
No. Title
1 Can a False Statement Be Made to the Authorities to Facilitate Tawarruq?
2 Deposit And Financing Products Based On Tawarruq
3 International Commodity Murabahah
4 Resolution No. 179 (19/5): Tawarruq: its meaning and types [Organised Tawarruq Impermissible in 2009]
5 Prohibition of Al-Tawarruq Al-Munazzam in 2007
6 Rules Of Tawarruq
7 Tawarruq Using Cement as the Commodity
8 Tawarruq When the Bank Does Not Involve Itself in the Customer’s Resale of the Good
9 Tawarruq With a Conventional Bank
10 Using Cars as the Commodity in Tawarruq

 

ADVERTISEMENTS

 

 


I-FIKR Sponsors