Why is interest on money forbidden in Islam?

Islam prohibits it because in Islam, time is NOT money. Money is not a commodity to be bought and sold, which is what usurers do. Money is a means by which to acquire property or investments. In Islam, legitimate profit is one gained from merchandising actual products and services, or appreciation of investments. Money does not appreciate.

To understand this better, consider that the only money in Islamic finance is gold and silver. If you compare the value of the dollar, for instance, with the price of gold, you will notice a remarkable reverse relationship! What cost a gold Dinar a thousand years ago, still costs pretty much a gold Dinar today

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