The Ruling on Buying Foreign Currency and Waiting to Sell It

Question:
What is the ruling on buying other currencies, such as the lira or the dollar or others, if the price drops and then he sells it for profit?

Answer:
There is nothing wrong with a person buying foreign currency, taking possession of it, paying the price, and receiving the currency, so that mutual possession is achieved between them. Then he holds onto the foreign currency, for example the liras, keeping it stored with him and waiting for its price to rise. When its price goes up, he sells it.
And when he sells it, mutual possession is required. There is nothing wrong with this, because this is seeking lawful sustenance. However, mutual possession is required at the initial purchase and at the second sale. As for the price rising or falling when it is sold for a different type of currency, there is nothing wrong with that. If it is sold for a different type of currency, there is nothing wrong with that, based on the saying of the Messenger (peace and blessings be upon him) . Selling one currency for another, meaning selling the currency of one country for the currency of another country, is a difference in type. Therefore, it is permissible to have a difference in amount or an increase, but mutual possession is required in the meeting place.