The Ruling on Hawalah (Transfer of Debt) Between Two Different Currencies

Question:
May Allah reward you, Honorable Shaykh. This questioner says: This is a matter of hawalah (transfer of debt). If a man, for example, transfers one thousand Saudi riyals to Yemen, such that the person to whom it is transferred receives it in Yemeni riyals, is there anything wrong with that?

Answer:
Yes, this is sarf (currency exchange). This is sarf where the Saudi riyals are handed over here, but the exchange is not received except in Yemen or in another country. This is sarf in which riba (usury or interest) occurs. It is obligatory to exchange hands in the presence of the parties; it is obligatory to exchange hands in the presence of the parties. If he wants to handle this matter, he should buy Yemeni currency here, buy Yemeni currency from here, and then transfer it. As for giving him Saudi riyals and taking Yemeni riyals in exchange there, the Prophet (peace and blessings be upon him) said: “As long as they have not separated, and there is nothing between them, hand to hand.” Yes.