Message No : 8Sr.No : 349/724
Question By : Mohd. Feroz

Assalamu Alaikum
I buy and resell Currency of different countries through Internet. Please tell me if it¡¯s Jaiz (lawful) in Islam

 

Reply By : Mohd. As¡¯ad Qasmi
Designation : Mufti, ODI, MMERC, Mumbai  

(Note: Due to some unavoidable reasons I apologize for any inconvenience caused by the late posting of the answer).

Wa Alaikumus Salaam wa Rahmatullahi wa Barakatuh

The answer to your question is as follows:

You are permitted to purchase the currencies of different countries and resell them with profit when their rate is increased. However selling and purchasing of currencies on credit is no more than involving into interest, thus prohibited. (Al-Hidayah, Vol. 3, Page 105)

In short, exchange of similar currencies either with difference or on credit likewise exchange of dissimilar currencies on credit is considered as interest and not allowed. It means exchange of similar currencies is permitted with two conditions first they should be exchanged as par their values; secondly the exchange should be based on cash not credit means payment should be done on the spot. However, exchange of dissimilar currencies is bounded with one condition only that is to be exchanged on cash. As the Prophet (saws) said, ¡°There is no interest (Riba) (in money exchange) except when it is not hand to hand (Bukhari Vol: 3 Hadith 386)

When Allah¡¯s Apostle (saws) was asked about money exchange, he replied, ¡°It is hand to hand, there is no harm in it, otherwise it is not permissible.
(Bukhari Vol: 3 Hadith 276)

And Allah (swt) knows the b

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