Clarity on issue of Riba is so important in Shari’ah that while recognizing change in value due to change in quality, it does not force us to exchange different qualities in equal quantity and yet in case of Amwale Ribuwiah, it does not allow these to be directly exchanged with any excess of weight (quantity) on either side. As generally understood by our scholars, this restriction was essential to stop practice of Riba by hiding behind difference in quality.
The first role of money is to be a store of value- something that is expected to retain its value in a reasonably predictable way over time. Gold or silver that was mined hundreds of years ago would still be valuable today” (source) – So think of it as something that doesn’t really get affected by inflation, and hence won’t lose its value. Money’s second role is to be a unit of account. The thing that goods and services are priced in terms of. For example, the price of items you see on menus and tags. Pound is currency of the United Kingdom, but it could be a type of good instead. It could also be barter: ‘give me 5 goats if you want my new horse.
Financial crises are often linked to unsustainable booms in financial and business cycles. Research shows that credit and house price cycles are closely tied to output cycles. From an Islamic perspective, synchronizing financial and business cycles can promote stability. A Shari’ah-compliant system without interest rates can align the financial cycle with the real economy, bolstering stability.
Islamic Economics Project 