Currency Exchange with Sarf
Machine translationRead the Arabic original
The first question of Fatwa No. ( 14385 )
Q1: I and many of the Sudanese workers here need to send some of our money to our families. It is well known that here in the Kingdom, the riyal is stronger than the Sudanese pound, and likewise other foreign currencies vary in value. There is no way to send any amount to the country. The method followed is that you agree with a traveling person and give him, for example, 1000 Saudi riyals in cash, and he
in turn buys goods with it to sell there. There is no doubt that he benefits greatly without any loss. There are official traders for this work, and they earn huge profits in exchange for this 1000 riyals. You ask him to deliver to your family the bank amount in Sudanese pounds that you spent on it, 5 pounds, 10 pounds, according to the agreement; because there is no other way besides this method. If he tries to take the riyals in his pocket and exchange them in the banks there, even one riyal, he exposes himself to punishment, and if the amount is large, perhaps to execution, without a doubt. Many have been executed for this reason according to the law there. My question: Is there any riba in this form? I have heard on the program (Nur 'ala al-Darb) that it is obligatory to give the person hand to hand, and this is not possible because there is no Sudanese currency here. Please inform us, may Allah reward you with good. This has occupied my mind greatly. .
A1 : This transaction is not permissible; because it is exchanging one currency with another without hand-to-hand exchange. al-Bukhari narrated from the Prophet (peace and blessings be upon him) that he said:Sunan Ibn Majah 2253Sahih (Darussalam) . And the meaning of (ha and ha) is an allusion to giving and taking, i.e., take and give. So exchanging one currency with another without hand-to-hand exchange is riba, which is not permissible for a Muslim to do. In it, there is also another aspect, which is that it is a loan that brought benefit, so it is riba. But the Shari'ah way out from such riba transactions is that you agree with him on
a mudarabah partnership. You pay the capital, and he works with it, which is buying the goods you want to buy, then he sells them in your country. The profit is between you two, and the loss is likewise. The capital returns to you, so you receive it there or he delivers it to your family.
Q1: I and many of the Sudanese workers here need to send some of our money to our families. It is well known that here in the Kingdom, the riyal is stronger than the Sudanese pound, and likewise other foreign currencies vary in value. There is no way to send any amount to the country. The method followed is that you agree with a traveling person and give him, for example, 1000 Saudi riyals in cash, and he
in turn buys goods with it to sell there. There is no doubt that he benefits greatly without any loss. There are official traders for this work, and they earn huge profits in exchange for this 1000 riyals. You ask him to deliver to your family the bank amount in Sudanese pounds that you spent on it, 5 pounds, 10 pounds, according to the agreement; because there is no other way besides this method. If he tries to take the riyals in his pocket and exchange them in the banks there, even one riyal, he exposes himself to punishment, and if the amount is large, perhaps to execution, without a doubt. Many have been executed for this reason according to the law there. My question: Is there any riba in this form? I have heard on the program (Nur 'ala al-Darb) that it is obligatory to give the person hand to hand, and this is not possible because there is no Sudanese currency here. Please inform us, may Allah reward you with good. This has occupied my mind greatly. .
A1 : This transaction is not permissible; because it is exchanging one currency with another without hand-to-hand exchange. al-Bukhari narrated from the Prophet (peace and blessings be upon him) that he said:
Exchanging gold for gold is usury unless it is done on the spot. (Exchanging) wheat for wheat is usury, unless it is done on the spot. (Exchanging) barley for barley is usury unless it is done on the spot. (Exchanging) dates for dates is usury, unless it is done on the spot.
الذهب بالذهب ربًا إلا هاء وهاء، والبر بالبر ربًا إلا هاء وهاء، والشعير بالشعير ربًا إلا هاء وهاء، والتمر بالتمر ربًا إلا هاء وهاءa mudarabah partnership. You pay the capital, and he works with it, which is buying the goods you want to buy, then he sells them in your country. The profit is between you two, and the loss is likewise. The capital returns to you, so you receive it there or he delivers it to your family.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.