The ruling on selling paper riyals for metal riyals with a difference in amount

Question:
What is the ruling in the Shari'ah for one who takes ten riyals and gives nine metal riyals, especially this phenomenon in places where coinage is needed?

Answer:
The Permanent Committee for Scholarly Research and Ifta has issued a fatwa on this matter stating that this transaction is not permissible because it is considered riba (usury or interest). It is a sale of currency for currency of the same type, because it is all Saudi riyal; the paper riyal and the metal riyal are both Saudi riyal, so they are of one type. Therefore, a difference in amount is not permissible. The Messenger (peace and blessings be upon him) prohibited it, as he (peace and blessings be upon him) forbade except in equal amounts. These paper and metal currencies take the place of gold and silver, so they carry the same ruling as them. Yes. May Allah reward you with good, and may He do you good.