#899: Ruling on Treasury Bills
899. QUESTION:
“Assalamualaikum. I asked a question on treasury bills about a year ago now that has not been answered. How long will it take for a question asked/submitted here, to be responded to? I think the admin needs to do something on this…”
ANSWER:
Wa Alaykum Salām Warahmatullāh Wabarakātuh.
Alhamdulillāh.
First, we apologise for the unwarranted delay in responding to your Question, may Allāh reward you and illumine your heart for your patience, amīn.
As for Treasury Bills, then know that they are a form of Government Bonds or Debt Securities with maturity of less than a year.
A bond is a fixed income instrument that represents a loan made by an investor to a borrower which could be Individual Companies or Governments. It is therefore a Document between the Lender and the Borrower that includes the details of the loan and its payments. Bonds are used mainly by Companies and Governments to finance projects and operations. Owners of bonds are therefore creditors of the issuer.
That been said, when you purchase bonds, you actually are lending your wealth for a fixed term at specific interest rates to be paid to you either as termly dividends or at the expiry of your bond.
This is Harām without a doubt.
Ibn Qudāmah Al-Maqdisī rahimahullāh said in Al-Mughnī:
“Every borrowing which for which a condition of increase is stipulated is Harām without any difference (among the Muslims). Ibn Al-Mundhir said: they consensed that if the Lender stipulates as a condition to the Borrower any increase (on the money borrowed) or any gift (in return) and he in turn borrows in that manner, that taking this increase is Ribā. And generally speaking, it has been narrated from Ubayy bn Ka’ab, Ibn ‘Abbās and Ibn Mas’ūd that they forbade any borrowing that brings benefit (to the Lender)”
Al-Qurtubī rahimahumullāh said in his Tafsīr:
“The Muslims are at a consensus, based on the Statements soundly transmitted from their Prophet – salallāhu Alayhi Rahamātullāh – that any form of loan that is prefixed on some form of increase (Interest) is Ribā…”
Treasury Bills are therefore Harām without a doubt and the Muslims should do themselves good by having alternative Halāl forms of Investments for the good of the Ummah.
We ask Allāh for Guidance and Tawfīq amīn.
Bārakallāhu Fīkum
Jazakumullāhu Khayran
Abū Āsim
16th Jumadal Ūla, 1441AH.
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