Toufiq: Bank Interest Rates Are Based on Mutual Consent, and the State Must Ensure Justice and Prevent Exploitation
In his address at the 23rd Forum on Islamic Financial Stability, held on Thursday, July 3, 2025, in Rabat, Minister of Endowments and Islamic Affairs, Ahmed Toufiq, emphasized that dealing with interest on loans should be understood within the framework of contract and mutual consent, meaning within a legislative context that guarantees justice, rather than merely as a purely religious issue. He explained that when a loan shifts from a necessity to a means of exploitation, it becomes an injustice that requires state intervention, as the guarantor of financial justice, to protect borrowers from oppression through deterrent institutions and legislation.
Toufiq confirmed that Morocco is seriously engaged in developing Islamic finance through effective partnership between Bank Al-Maghrib and the Higher Scientific Council. This coordination has contributed to integrating financial operators within a framework of legal controls that align with modern transactional realities. He noted that the openness of scholars to the challenges of the contemporary financial sector, alongside the involvement of banking institutions in this model, reflects the maturity of the Moroccan experience in this field.
The minister touched upon the philosophical aspect of the prohibition of interest, citing a text by the Greek philosopher Aristotle titled "Money Does Not Breed," which he studied at university in the 1970s, criticizing usurious loans in Athens as a form of enslavement for debtors. He added that the Quran later prohibited interest not only because it is religiously forbidden but also because it establishes social injustice and contradicts the principle of justice, which is the essence of Sharia.
Toufiq highlighted that, from an Islamic perspective, money is not an end in itself but a means to achieve solidarity and justice, warning against turning it into a tool for accumulation or domination. He called for recognizing the spiritual aspect in all financial transactions and stressed that individuals must not be allowed to manage money outside the constraints of benevolence and justice, as this opens the door to exploitation and corruption.
He argued that state intervention to regulate the financial market, through regulatory frameworks and oversight institutions, is essential to ensuring balance and protecting vulnerable groups from predatory practices. He concluded that money should be managed according to the overarching goals of Sharia, as it is a trust that should not be left to the foolish or deceitful but should be employed to serve society and achieve economic justice.
