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Abstract

First, terms like circulation or exchange is not clear i n Islamic economics. In fact, no new terms, on carry any new connotations about them. They have existed in Muslim jurisprudence and can be deduced from subjects like sales and transactions in the books of Islamic jurisprudence. Their counterparts in modern day compilation s are .terms like Earnings, Livelihood, Subsistence, Morals and Ethics. Second, there is a lot of controversy going on around exchange and its position in Isla mic economics. There are t hose who consider exchange as a department of distribution and those who would take i t as a branch of production. But perhaps the right thing is to isolate Exchange and treat it as a separate subject, thereby making the economic process, as viewed by Islam, consisting of Production, distribution, exchange, and consumption. Third, in Islamic economics exchange is a thing sanctioned by the Qur’an, the Prophet's Tradition, Consensus, the acts of the Prophet's companions as well as by wisdom and logic. In fact, if one ponder over the economical arguments, he will find that they encouraged the process of' exchange on the one hand, on the other, discouraged and diminished the costs of exchange. Mea n time they condemned the indolent hiding under the cover of being wholly dependent on God and trusting in Him al0ne for providence while ignoring the means to acquire. Fourth the different areas of exchange are agriculture, industry and trade. Some Muslim Jurists, while comparing these areas, have tried to over emphasize one over the others but the fact is that there is no fixed scale of preference on preponderance. It keeps on changing according to the changing economic conditions of Muslim from time to time. Fifth, the Muslim Jurisprudents gave a lot of importance to the contracts regulating exchange. They have various contracts, laying down and defining conditions as to when and how they become binding and come into force, their correctness and execution, and the consequences thereof if the conditions are fulfilled as well as the consequences in the case all or some of the conditions are dropped or waiting. Sixth, the Muslim doctors of law laid utmost emphasis, in matters of exchange, on mutual agreement. So that the Hanafi School of Jurisprudence made it chief pillar of Exchange. They also stressed on the need of complete information about exchange transactions and prices at the time when industry have developed, a variety of currencies have circulated and prices have fluctuated. Likewise, they stressed on the fact that the contracts are builders and must be honored if the conditions and what are known as pillars h ad been fulfilled. In addition this never overlooked the significance of fair pricing as determined by the balancing of supply and demand and production and consumption Seventh, today as yesterday the world economic crisis is a crisis of morals. Hence, Islam has ever tried to correct human conscience b) in stilling in to the hearts of traders a constant frat of God, by instructing them to what is lawful and permissible and what is unlawful and forbidden, thereby lifting them up morally and helping then to behave well in trade matters since nobody dies until he has consumed his allotted portion of provisions. For instance, Islam educates them to shun swearing in sales, keep the rules of truth and honesty in commerce, refrain from all types harmful of forbidden trade, and avoid interest which is path of capitalism and a device of international Zionism. And, finally, Praise be to Allah, the sustainer of the worlds, and Peace on the Prophet, his family and his companions.

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